masters, mates & pilots pension plan third …m.m.& p. pension plan third restated...

MASTERS, MATES & PILOTS

PENSION PLAN

THIRD RESTATED REGULATIONS Revised: June 5, 2014 (Through Amendment #14)

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M.M.& P. PENSION PLAN THIRD RESTATED REGULATIONS CONTENTS

Page ARTICLE I DEFINITIONS Section 1.01 Agreement and Declaration of Trust 1 1.02 Plan 1 1.03 Fund 1 1.04 Organization 1 1.05 Employers 2 1.06 Employee 3 1.07 Trustees 4

1.08 Covered Employment 4 1.09 Regulations 5 1.10 Year of Participation 5 1.11 Beneficiary 5 1.12 Pension Reform Act of 1974 or ERISA 5 1.13 Normal Retirement Age 6 1.14 Contribution Period 6 1.15 Gender 6 1.16 Actuarial Present Value 7

1.17 Participant 8 1.18 Other Terms 9 1.19 Highly Compensated Employee 9 1.20 Non-Highly Compensated Employee 11 1.21 Non-Bargained Employee 11 1.22 Plan Year 11 ARTICLE II PARTICIPATION Section 2.01 Purpose 12 2.02 Participation 12 2.03 Termination of Participation 12 2.04 Reinstatement of Participation 13 ARTICLE III TYPES OF PENSIONS, ELIGIBILITY AND AMOUNTS FOR PENSIONS Section 3.01 Outline 14 3.02 Regular Pension - Eligibility 15 3.03 Regular Pension - Amount 16

3.04 Reduced Pension - Eligibility 32

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ARTICLE III TYPES OF PENSIONS, ELIGIBILITY AND AMOUNTS FOR PENSIONS (Continued)

Page Section 3.05 Reduced Pension - Amount 32

3.06 Early Retirement Pension - Eligibility 33 3.07 Early Retirement Pension - Amount 34 3.08 Disability Pension - Eligibility 35 3.09 Disability Pension - Amount 35 3.10 Definition of Total and Permanent Disability 35 3.11 Physical Examination 36 3.12 Military Pension 36 3.13 Deferred Vesting Pension - Eligibility 37 3.14 Deferred Vesting Pension - Amount 38 3.15 Deferred 10-Year Pension – Eligibility 38 3.16 Deferred 10-Year Pension - Amount 38 3.17 Increases in Regular Pension Rate 39 3.18 Social Security Level Pension Income Option 39 3.19 Cost of Living Adjustment 40 3.20 Incentive Retirement Program 46

3.21 Partial Lump-Sum Payment Option 48 3.22 Lump-Sum Payment Option 50

3.23 Offset of Benefits for Certain Administrative Office Employees 62

3.24 Action of Trustees 62 ARTICLE IV ACCUMULATION OF PENSION CREDITS AND VESTING SERVICE Section 4.01 Outline 63 4.02 Pension Credit for Periods Before October 1, 1955 (Past Service) 63 4.03 Pension Credit for Periods On or After October 1, 1955 66 4.04 Credit for Non-Working Periods 72 4.05 Breaks in Service-Cancellation of Pension Credits 74 4.06 Accumulation of Vesting Service 85 4.07 Eligibility and Vesting After February 28, 2013 86 ARTICLE IV-A AUGMENTED PENSION BENEFIT Section 4.01-A Outline and Purpose 87 4.02-A Definitions 87 4.03-A Valuation 88 4.04-A Carryover and Discontinuance 91

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ARTICLE IV-B PENSION CREDIT PURCHASE Page Section 4.01-B Outline 92 4.02-B Definition of a Qualified Participant 92 4.03-B Limit on Number of Pension Credits that may be Purchased 93 4.04-B Procedure for Purchasing Pension Credit 93 4.05-B Tables for Estimating Cost of Purchasing Pension Credits 96 4.06-B No Other Rollovers Allowed to Pension Plan 96 4.07-B No Applicability to Vesting Service 96 ARTICLE V PARTICIPANT AND SPOUSE PENSION AND BENEFITS TO SURVIVORS ______ Section 5.01 General 97 5.02 Participant and Spouse Pension at Retirement 101 5.03 60-Month Guarantee 108 5.04 Pre-retirement Surviving Spouse Pension Before age 55 112 5.05 Pre-retirement Surviving Spouse Pension After age 55 118 5.06 Inactive Vested Participants 122 5.07 Relation to Qualified Domestic Relations Order 123 5.08 Trustees' Reliance 123 5.09 Death Benefit 124 5.10 Beneficiaries 124 5.11 Facility of Payment 127 ARTICLE VI APPLICATIONS, BENEFIT PAYMENTS AND

RETIREMENT Section 6.01 Advance Written Applications Required 128 6.02 Information Required 128 6.03 Standard of Proof 129 6.04 Notice of Denial and Right of Appeal for Non-Disability Pensions 129 6.05 Notice of Denial and Right of Appeal for Disability Pensions 133 6.06 Benefit Payments Generally 137 6.07 Commencement of Benefits 138

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ARTICLE VI APPLICATIONS, BENEFIT PAYMENTS AND RETIREMENT (Continued) Page

Section 6.08 Retirement 142 6.09 Suspension of Benefits 143 6.10 Benefit Payments Following Suspension 152 6.11 Re-Employment of Pensioners during

American Vessel Re-flagging 155 6.12 Vested Status or Non-forfeitability 158 6.13 Vested Status or Non-forfeitability After Attaining Normal Retirement Age 160 6.14 Payments to Incompetents or Minors 161 6.15 Non-Assignment of Benefits 162 6.16 Vested Interest 164 6.17 Maximum Benefits 165 6.18 Direct Rollover of Benefits 166 6.19 Actuarial Adjustment for Delayed Retirement 169 6.20 Civil Actions 170 ARTICLE VII MISCELLANEOUS Section 7.01 Amendments 172 7.02 Interpretation 172 7.03 New Participating Employer 172 7.04 Terminated Employers 172 7.05 Termination 174 7.06 Free Look Rule 177 7.07 Merger 179 ARTICLE VIII RECIPROCAL BENEFITS Section 8.01 Purpose 180 8.02 Signatory Funds 180

8.03 Definitions 181 8.04 Transfer of Contributions Attributable to Temporary Participants 182 8.05 Crediting of Employment of Temporary Participants 184 8.06 Arbitration 185

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ARTICLE IX SPECIAL RULES REQUIRED BY REHABILITATION PLAN Page Section 9.01 Rate of Benefit Accrual 186 Section 9.02 Effective Dates and Applicability 187 Section 9.03 Eligibility for Regular Pension 187 Section 9.04 Lump Sum Distributions and Social Security Level Pension Income Option 188 Section 9.05 Death Benefit 188 Section 9.06 Cost of Living Adjustments 188 APPENDIX A P&S Provision - 1/1/76 - 8/22/86 Pages 1 through 12 190 APPENDIX B Great Lakes Pension Plan Ten Year Certain Option 1 through 2 202 APPENDIX C M.M.& P. Pension Plan Lump Sum Factors Tables 1 and 2 204 APPENDIX PR Special Provisions Related to Puerto Rico Participants 206

M.M.& P. PENSION PLAN THIRD RESTATED REGULATIONS ARTICLE I

DEFINITIONS

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The following regulations governing the M.M.& P. Pension Plan are hereby

promulgated and established by the Trustees thereof, pursuant to the Agreement and Declaration of

Trust establishing the M.M.& P. Pension Plan.

Section 1.01 Agreement and Declaration of Trust

The term "Agreement and Declaration of Trust" or "Trust," as used herein, shall

mean the Agreement and Declaration of Trust establishing the M.M.& P. Pension Plan, dated

October 17, 1973 and any amendments, revisions and modifications thereof and the Trust created

thereunder.

Section 1.02 Plan

The term "Plan" or "Pension Plan" shall mean the M.M.& P. Pension Plan

established by the Trustees, pursuant to said Agreement and Declaration of Trust, including any

amendments or modifications thereof.

Section 1.03 Fund

The term "Fund," as used herein, shall mean the money or other things of value

which are under the control or custody of the Trustees for the operation and administration of the

Plan.

Section 1.04 Organization

The term "Organization," as used herein, shall mean the International Organization

of Masters, Mates and Pilots, AFL/CIO.


DEFINITIONS

2

Section 1.05 Employers

The term "Employers" shall mean various Employers of the Employees working

under the provisions of a Collective Bargaining Agreement with the Organization, and Employers

who have executed a Participation Agreement with the Organization requiring that contributions be

made on behalf of Participants.

The "Employer" shall also be deemed to be an M.M.& P. Fund, Plan or Committee,

or the Organization, and any other Employer from whom the Trustees mutually agree that

contributions may be accepted, who are not covered by a Collective Bargaining Agreement or

Participation Agreement.

For purposes of identifying Highly Compensated Employees and applying the rules

on participation, vesting and statutory limits on benefits under the Plan but not for determining

Covered Employment, the term "Employer" includes all corporations, trades or businesses under

common control with the Employer within the meaning of Internal Revenue Code Section 414(b)

and (c), all members of an affiliated service group with the Employer within the meaning of Internal

Revenue Code Section 414(m) and all other businesses aggregated with the Employer under

Internal Revenue Code Section 414(o).


DEFINITIONS

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Section 1.06 Employee

The term "Employee" shall mean an individual who is employed in Covered

Employment under the provisions of a Collective Bargaining Agreement or whose Employer has

executed a Participation Agreement with the Organization.

The term "Employee" shall also include an individual employed by an M.M.& P.

Fund, Plan or Committee, or the Organization, or any other Employer or individual for whom the

Trustees and the Employer mutually agree that contributions may be accepted, who are not covered

by a Collective Bargaining Agreement and who have not voluntarily waived participation in the

Plan at the time of his hiring.

The term "Employee" includes a leased employee of an Employer, within the

meaning of Section 414(n) of the Internal Revenue Code, who otherwise meets the conditions for

participation, vesting and/or benefit accrual under the Fund. A “leased employee” is defined as any

person (other than an Employee) who pursuant to an agreement between the Employer and any

other person (“leasing organization”) has performed services for the Employer (or for the Employer

and related persons determined in accordance with Section 414(n)(6) of the Code) on a substantially

full-time basis for a period of at least one year, and such services are performed under the primary

direction or control of the Employer.


DEFINITIONS

4

Section 1.07 Trustees

The term "Trustees" shall mean Employer and Union Trustees collectively, who at

the time, are acting as Trustees under the terms of the Agreement and Declaration of Trust.

Section 1.08 Covered Employment

The term "Covered Employment" shall mean employment for which an Employer is

obligated to contribute to the Plan, and for the purpose of determining credits for benefits, may

include periods of time preceding the time the Employer became so obligated as may be determined

by the Trustees, or include periods of time otherwise provided by law. Notwithstanding the

preceding sentence, the term “Covered Employment,” for the purpose of determining credits for

benefits, may also include periods of time when the Employer is on a “contribution holiday” and is

not obligated to contribute to the Plan for a period of time pursuant to the agreement of the

Organization and the Employer.

Effective June 16, 1981, a day of pension credit for each day of attendance, to thirty

(30) days of pension service credit per year, shall be granted for successful completion of courses at,

or sponsored or approved by, M.I.T.A.G.S. There is no earnings credit or duplication of credit for

voluntary M.I.T.A.G.S. attendance while on vacation.


DEFINITIONS

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Section 1.09 Regulations

The term "Regulations" shall mean the plan, program, method and procedures

governing the amount and payment of pensions and other benefits, the determination of eligibility

and the general administration and operation of the Pension Plan, as the Trustees may, from time to

time, promulgate and establish, as embodied herein.

Section 1.10 Year of Participation

For purposes of compliance with Regulation 2530 of the Department of Labor, a

"Year of Participation" means a calendar year during a contribution period in which a Participant in

the Maritime Industry has completed 360 days in Covered Employment and in which other

Participants have completed 12 months in Covered Employment. Years of pension credit and

vesting service are determined by the provisions of Article IV.

Section 1.11 Beneficiary

The term "Beneficiary" means a person designated by a Participant, or by the terms

of the Regulations or applicable federal law, who is or may be entitled to a benefit hereunder.

Section 1.12 Pension Reform Act of 1974 or ERISA

The term "Pension Reform Act of 1974" or "ERISA" shall mean the Employee

Retirement Income Security Act of 1974, as amended.


DEFINITIONS

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Section 1.13 Normal Retirement Age

Effective January 1, 1988, the term Normal Retirement Age shall mean the later of:

(a) age 65, or

(b) the earlier of:

(i) the fifth anniversary of the Participant's Plan participation, disregarding

participation before the effective date of this Section, or

(ii) the tenth anniversary of the Participant's Plan participation.

(iii) Participation before a Permanent Break in Service, and participation

before a temporary Break in Service in the case of a former

Participant who has not returned to Covered Employment and

reestablished participation in accordance with Section 2.04 are

disregarded in applying this subsection.

Section 1.14 Contribution Period

"Contribution Period" means, with respect to a category of employment, the period

during which the Employer is obligated by its agreement to contribute to the Fund with respect to

such category of employment.

Section 1.15 Gender

Except as the context may specifically require otherwise, use of the masculine

gender shall be understood to include both masculine and feminine gender.


DEFINITIONS

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Section 1.16 Actuarial Equivalence and Actuarial Present Value

(a) The term "Actuarial Equivalence" means two benefits of equal "Actuarial Present

Value" based on the actuarial factors and assumptions specified in the provision in

which that phrase is used or, if not otherwise specified, based on the assumptions

described in this section.

(b) Unless otherwise specified in the Plan, the Actuarial Present Value of a benefit shall

be no less than the value of the benefit using the Applicable Interest Rate and the

Applicable Mortality Table.

(c) The Applicable Interest Rate for any calendar year is the interest rate specified by

section 417(e)(3)(C) of the Internal Revenue Code for the “lookback month”. The

lookback month is the month in which the Applicable Interest Rate is lowest during

the five-month period of August through December preceding the first day of the

following calendar year.

(d) The Applicable Mortality Table is the table prescribed by the Internal Revenue

Service in Notice 2008-85 or in any superseding guidance issued in accordance with

section 417(e)(3)(B) of the Internal Revenue Code.


DEFINITIONS

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Section 1.16 Actuarial Equivalence and Actuarial Present Value (Continued)

(e) Effective for distributions with annuity starting dates on or after December 31, 2002,

notwithstanding any other Plan provisions to the contrary, the applicable mortality

table used for purposes of adjusting any benefit or limitation under Code Sections

415(b)(2)(B), (C) or (D) and the applicable mortality table used for purposes of

satisfying the requirements of Code Section 417(e) is the table prescribed by the

Internal Revenue Service in Revenue Ruling 2001-62 or in any superseding

guidance issued in accordance with Code Section 417(e)(3)(B). Any reference to

the 1983 Group Annuity Mortality Table for purposes of the foregoing Code

Sections shall also be construed as references to the table prescribed in accordance

with Code Section 417(e)(3)(B).

Section 1.17 Participant

"Participant" means a Pensioner or an Employee who meets the requirements for

participation in the Plan as set forth in Article II, or a former Employee who has a vested right to a

pension under this Plan.


DEFINITIONS

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Section 1.18 Other Terms

Other terms are specifically defined as follows:

Section(s) (a) Break-in-Service 4.05 (One-Year Break-in-Service, Permanent Break-in-Service) (b) Day of Service 4.06 (c) ERISA 2.01 (d) Participant and Spouse Pension 5.01 (e) Pension Credits 4.02 and 4.03 (f) Retirement or Retired 6.08 (g) Vested Status 6.12 (h) Years of Vesting Service 4.06

Section 1.19 Highly Compensated Employee

(a) The term "Highly Compensated Employee" includes highly compensated active

employees and highly compensated former employees of an Employer. Whether an

individual is a Highly Compensated Employee is determined separately with respect

to each Employer, based solely on that individual's compensation from or status with

respect to that Employer.


DEFINITIONS

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Section 1.19 Highly Compensated Employee (Continued)

(b) Effective for years beginning after December 31, 1996, the term “Highly

Compensated Employee” means any Employee who: (1) was a 5% owner at any

time during the year or the preceding year, or (2) for the preceding year had

compensation from the Employer in excess of $80,000. The $80,000 amount is

adjusted at the same time and in the same manner as under § 415(d) of the Internal

Revenue Code, except that the base period is the calendar quarter ending September

30, 1996. A Highly Compensated Former Employee’s status is based on the rules

applicable to determining Highly Compensated Employee status as in effect for that

determination year, in accordance with § 1.414(q) – 1T, A-4 of the temporary

Treasury Regulations and Notice 97-45. In determining whether an Employee is a

Highly Compensated Employee for years beginning in 1997, the amendments to §

414(q) of the Internal Revenue Code stated above are treated as having been in

effect for years beginning in 1996. Effective for limitation years beginning on or

after January 1, 1998, compensation for purposes of this subsection means

compensation as defined under Section 415(c)(3) of the Internal Revenue Code,

including amounts not includible in the gross income of the Employee by reason of

Sections 125, 132(f)(4) or 457 of the Internal Revenue Code.


DEFINITIONS

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Section 1.20 Non-Highly Compensated Employee

The term "Non-Highly Compensated Employee" shall mean an Employee of the

Employer who is not a Highly Compensated Employee.

Section 1.21 Non-Bargained Employee

The term "Non-Bargained Employee" is a Participant whose participation is not

covered by a Collective Bargaining Agreement.

Section 1.22 Plan Year

The term "Plan Year", as used herein, shall mean the calendar year ending

December 31.

M.M.& P. PENSION PLAN THIRD RESTATED REGULATIONS ARTICLE II

PARTICIPATION

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Section 2.01 Purpose

This Article contains definitions to meet certain requirements of the Employee

Retirement Income Security Act of 1974 (otherwise referred to as ERISA). Once an Employee has

become a Participant, the provisions of this Plan give him credit in accordance with the Regulations

of the Plan for some or all of his service before he became a Participant.

Section 2.02 Participation

An Employee who is engaged in Covered Employment during the Contribution

Period shall become a Participant in the Plan on the earliest January 1 or July 1 following

completion of a 12 consecutive month period during which he completed at least 87 Days of Service

in Covered Employment. The required days of employment may also be completed with any

employment with an Employer if that employment is continuous with the Employee's Covered

Employment with that Employer.

Section 2.03 Termination of Participation

A person who incurs a One-Year Break in Service, defined in Article IV, Section

4.05(f)(ii), shall cease to be a Participant as of the last day of the calendar year which constituted the

One-Year Break, unless such Participant is a Pensioner or has achieved vested status.

M.M.& P. PENSION PLAN THIRD RESTATED REGULATIONS ARTICLE II

PARTICIPATION

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Section 2.04 Reinstatement of Participation

An Employee who lost his status as a Participant in accordance with Section 2.03

shall again become a Participant by meeting the requirements of Section 2.02 on the basis of service

after the calendar year during which his Participation terminated.

M.M.& P. PENSION PLAN THIRD RESTATED REGULATIONS ARTICLE III TYPES OF PENSIONS, ELIGIBILITY AND AMOUNTS FOR PENSIONS

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Section 3.01 Outline

This Article establishes the rules for pensions becoming payable on and after June

16, 1968 for Participants who retire from employment in the American Merchant Marine, if they

meet certain specified requirements. Four different types of pensions are established for those

retiring prior to January 1, 1976 and six different types of pensions for those retiring on and after

January 1, 1976.

(a) A Regular Pension for Participants with at least one Day of Service prior to June 1,

1995 who retire with at least 20 years of Pension Credit, and for any other

Participants who retire after they have attained the minimum age of 55, with at least

20 years of Pension Credit.

(b) A Reduced Pension for Participants who retire after they have attained the age of 65,

with at least 15 years of Pension Credit.

(c) An Early Retirement Pension for Participants who retire between the ages of 60 and

64 with at least 15 years of Pension Credit.

(d) A Disability Pension for Participants with at least 10 years of Pension Credit who

become Totally and Permanently Disabled, provided they meet certain requirements

as to the nature of disability.

(e) A Deferred Vesting Pension for Participants who have attained Vested Status as

defined in Section 6.13. (Effective January 1, 1976)


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Section 3.01 Outline (Continued)

(f) A Deferred 10-Year Pension for Participants who retire with at least 10 but less than

15 years of Pension Credit and who have attained Normal Retirement Age.

(Effective January 1, 1976)

This Article sets up the rules of eligibility and monthly benefit amounts for each

type of pension. The basis on which Pension Credits and Vesting Service are accumulated is stated

in Article IV.

Regardless of any other provision of the Plan with respect to eligibility for any

pension, a Participant employed by the Administrative Office (except instructors in the M.A.T.E.S.

Program) who, on January 1, 1978 is not otherwise eligible for a pension, shall not be eligible to

retire on a Regular Pension unless, in addition to meeting all the other requirements for such

pension, he has at least 20 years of Pension Credit and the total of his age on the date of his

retirement and his years of Pension Credit amounts to at least 65.

Section 3.02 Regular Pension - Eligibility

A Participant shall be entitled to retire on a Regular Pension if he meets the

following requirements:

(a) He has at least 20 years of Pension Credit and: (1) has at least one Day of Service

prior to June 1, 1995, or (2) has attained the minimum age of 55, or (3) his age and

years of Pension Credits total at least 80.


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Section 3.02 Regular Pension – Eligibility (Continued)

(b) The calendar year used to establish the 20th year of Pension Credit or the years in

excess thereof have been earned on and after June 16, 1965. In the case of pension

applications based on 24 or 25 years of Pension Credit, however, at least three years

of such Pension Credit must have been earned on and after June 16, 1965; provided,

however, that in the case of a Participant who has at least 25 years of Pension Credit

prior to June, 16, 1965, the foregoing requirements of earning three years of Credit

shall be waived if the Participant has at least one year of Pension Credit after June

16, 1965 and became Totally and Permanently Disabled prior to earning the said

three years of Pension Credit.

(c) In order to be eligible for a pension based on 30 years of Pension Credit, a

Participant must have at least 8 quarters of Pension Credit earned subsequent to July

1, 1972.

Section 3.03 Regular Pension - Amount

The amount of the Regular Pension shall be determined as follows:

(a) Pensions Effective Between June 16, 1968 and January 1, 1976

Years of Pension Credit Monthly Benefit 20 $325 or 37.5% of pay, whichever is higher 21 $345 or 40% " 22 $365 or 42.5% " 23 $385 or 45% " 24 $405 or 47.5% " 25-29 $425 or 50% " 30 or more $470 or 60% "


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Section 3.03 Regular Pension – Amount (Continued) (b) Pensions Effective Between January 1, 1976 and June 15, 1977 Years of Pension Credit Monthly Benefit 20 $325 or 37.5% of pay, whichever is higher 21 $345 or 40% " 22 $365 or 42.5% " 23 $385 or 45% " 24 $405 or 47.5% " 25-26 $425 or 50% " 27 $425 or 50.625% " 28 $425 or 52.5% " 29 $425 or 54.375% " 30 or more $470 or 60% "

(c) Pensions Effective On and After June 16, 1977 and Prior to January 1, 1979 With respect to Participants, including the instructors of the M.A.T.E.S. Program but

excluding all other Administrative Office Employees, whose pension becomes effective on

and after June 16, 1977, the following schedule applies:


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Section 3.03 Regular Pension – Amount (Continued)

(c) Pension Effective On and After June 16, 1977 and Prior to January 1, 1979 (Continued) Years of Pension Credit Monthly Benefit 20 $325 or 40% of pay, whichever is higher 21 $345 or 42% " 22 $365 or 44% " 23 $385 or 46% " 24 $405 or 48% " 25 $425 or 50% " 26 $434 or 52% " 27 $443 or 54% " 28 $452 or 56% " 29 $461 or 58% " 30 $470 or 60% "

In the case of a Participant who upon retirement subsequent to June 16, 1977, is entitled to

benefits under the foregoing schedule, but who has more than 30 years of Pension Credit,

the Trustees shall calculate the amount of additional pension such Participant would be

entitled to at the rate of 2% of pay for each such additional year up to Normal Retirement

Age. Such amount shall be set aside monthly to be used by the Trustees from time to time

to increase pension payments on an equitable basis to Pensioners then on the rolls receiving

less than Regular Pensions, but not including Pensioners receiving Deferred Vesting

Pensions. Pensioners retiring after June 16, 1977 but prior to January 1, 1979, who had

more than 30 years of Pension Credit and who did not receive the additional 2% percent of

"pay" per year for those years of Pension Credit over 30 years shall also receive the

additional 2% from January 1, 1979 forward, but shall not have pension amounts received

prior to January 1, 1979 recalculated.


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(d) Pensions Effective On and After January 1, 1979 and Prior to April 1, 2006

The following schedule applies with respect to Participants whose pension first

became effective on and after January 1, 1979:

Years of Pension Credit Monthly Benefit 20 $325 or 40% of pay, whichever is higher 21 $345 or 42% " 22 $365 or 44% " 23 $385 or 46% " 24 $405 or 48% " 25 $425 or 50% " 26 $434 or 52% " 27 $443 or 54% " 28 $452 or 56% " 29 $461 or 58% " 30 $470 or 60% " Over 30 An additional 2% for each year of Pension

Credit.

Proportional percentages shall be awarded from each partial year of Pension Credit.

In addition, any Participant who accumulates one or more years of Pension Credit after

July 1, 1981, and prior to April 1, 2006, and is eligible for a Regular Pension after

accumulating such Credit, shall receive a monthly pension based on the following

schedule:


20


(d) Pensions Effective On and After January 1, 1979 and Prior to April 1, 2006 (Continued) Years of Pension Credit Monthly Benefit 20 $325 or 40% of pay, whichever is higher 21 $345 or 42.5% " 22 $365 or 45% " 23 $385 or 47.5% " 24 $405 or 50% of pay, whichever is higher 25 $425 or 52.5% " 26 $434 or 55% " 27 $443 or 57.5% " 28 $452 or 60% " 29 $461 or 62.5% " 30 $470 or 65% " 31 $470 or 67.5% “ 32 $470 or 70% " 33 $470 or 72.5% " 34 $470 or 75% " 35 $470 or 77.5% " 36 $470 or 80% " 37 $470 or 82.5% " 38 $470 or 85% " 39 $470 or 85.5% " 40 $470 or 90% " 41 $470 or 92.5% " 42 $470 or 95% " 43 $470 or 97.5% " 44 $470 or 100% " Over 44 An additional 2-1/2% for each year of

Pension Credit.

Proportional percentages shall be awarded for each partial year of Pension Credit.


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(d) Pensions Effective On and After January 1, 1979 and Prior to April 1, 2006 (Continued) Notwithstanding the above, a Participant who accumulates one or more years of

Pension Credit after January 1, 1990, and prior to April 1, 2006, whose pension first

becomes effective on and after January 1, 1991, who had attained at least age 60 as

of such pension effective date with at least 30 years of Pension Credit prior to April

1, 2006, shall receive a monthly pension based on the following schedule:

Years of Pension Credit Monthly Benefit 20 $325 or 40% of pay, whichever is higher 21 $345 or 42 2/3% of pay, " 22 $365 or 45 1/3% of pay, " 23 $385 or 48% of pay, " 24 $405 or 50 2/3% of pay, " 25 $425 or 53 1/3% of pay, " 26 $434 or 56% of pay, " 27 $443 or 58 2/3% of pay, " 28 $452 or 61 1/3% of pay, " 29 $461 or 64% of pay, " 30 $470 or 66 2/3% of pay, " 31 $470 or 69 1/3% of pay, " 32 $470 or 72% of pay, " 33 $470 or 74 2/3% of pay, " 34 $470 or 77 1/3% of pay, " 35 $470 or 80% of pay, " 36 $470 or 82 2/3% of pay, " 37 $470 or 85 1/3% of pay, " 38 $470 or 88% of pay, " 39 $470 or 90 2/3% of pay, "


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Section 3.03 Regular Pension – Amount (Continued) (d) Pensions Effective On and After January 1, 1979 and Prior to April 1, 2006 (Continued) 40 $470 or 93 1/3% of pay, " 41 $470 or 96% of pay, " 42 $470 or 98 2/3% of pay, " 43 $470 or 101 1/3% of pay, " 44 An additional 2-2/3% of each year of Pension Credit. Proportional percentages shall be awarded for each partial year of Pension Credit.

(e) Pensions Effective On and After April 1, 2006

Notwithstanding the above, a Participant who accumulates one or more years of

Pension Credit on and after April 1, 2006, and is eligible for a Regular Pension after

accumulating such Credit, shall receive a monthly pension equal to the sum of (i) the

Participant’s accrued benefit on March 31, 2006, based on the applicable schedule in

Sub-paragraphs (a), (b), (c), and/or (d) hereinabove (or, the case of a Participant with

less than 20 years of Pension Credit, based on the Participant’s years of Pension

Credit multiplied by 2% of pay), but disregarding the effect of any Pension Credits

accumulated after March 31, 2006, or any increases in pay after March 31, 2006,

and (ii) the benefit derived with respect to the Pension Credits accumulated after

March 31, 2006, based on a rate of 2% of pay, but disregarding any pay received

prior to January 1, 2006. A proportional percentage shall be awarded for a partial

year of Pension Credit, and the monthly pension under the preceding sentence shall

not be less than the minimum dollar amount (i.e., $325 to $470, as applicable)

provided under Sub-paragraph (d) based on the Participant’s years of Pension Credit.


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(e) Pensions Effective On and After April 1, 2006 (Continued)

In the case of a Participant with more than 20 years of Pension Credit, the 2% rate

under Sub-paragraph (e)(ii) above shall cease to apply for a Plan Year (and the

incremental percentage rate derived from the applicable schedule in Sub-paragraph

(d), whether 2 ½% or 2 2/3%, will apply instead for such Plan Year, but only with

respect to Pension Credits accumulated during such Plan Year) if the Plan’s

minimum funding contribution, as required by ERISA and the Internal Revenue

Code, falls to 16% of payroll plus Feinberg, or lower, for such Plan Year, unless by

applying the applicable schedule in Sub-paragraph (d) for the accrual of Pension

Credits and/or by ceasing to apply the “pay limits” under Section 3.03 (f)(ii)(D) for

such Plan Year causes such minimum funding contribution to reach more than 19%

of payroll plus Feinberg for such Plan Year. For purposes of this provision,

“Feinberg” is defined as compensation which is added to a Participant’s shipboard

wages, excluding overtime unless otherwise provided in an applicable collective

bargaining agreement, to ensure that any vacation benefits payable under the

M.M.&P. Vacation Plan are included in the calculation of Participant’s “pay” under

the terms of this Plan. “Payroll” is defined as daily base wages plus

nonwatchstanding allowance unless otherwise provided in an applicable collective

bargaining agreement.


24


(f) Pensions Effective On and After March 1, 2013

Notwithstanding the above, except in the case of Participants who are working

under a collective bargaining agreement with Lamont Doherty Earth Observatory

of Columbia University, the rate of benefit accrual under this Plan with respect to

Pension Credits accumulated after February 28, 2013, shall be 0.00%, and all

increases in pay after that date shall be disregarded in computing benefits.

Notwithstanding the above, in the case of Participants who are working under a

collective bargaining agreement with Lamont Doherty Earth Observatory of

Columbia University, the rate of benefit accrual under this Plan with respect to

Pension Credits accumulated after December 31, 2013, shall be 0.00% and all

increases in pay after that date shall be disregarded in computing benefits.

(g) The term "pay" as used in the foregoing Sub-paragraphs (a), (b), (c), (d), (e), and (f) of

Section 3.03 shall mean as follows:

(i) For Pensions Effective Prior to January 1, 1976

(A) The term "pay" shall be deemed to mean the average base monthly

wages of the Participant during the period of any five consecutive

years within the last ten years immediately preceding the effective

date of the pension, which will produce the highest average for the

Participant.


25


(g) (Continued)

(i) For Pensions Effective Prior to January 1, 1976

(B) Shoreside Company Participants and Pilots shall not receive pensions

on base wages which exceed the base wages of a Master, Class A,

Dry Cargo.

(ii) For Pensions Effective On and After January 1, 1976

The term "pay" shall mean the greater of (A) or (B) below:

(A) Wage Related

1. Except as provided in Sub-paragraph 2 below, the average

base monthly wage produced by averaging the base monthly

wages of the Participant during the highest five consecutive

calendar years within the ten calendar year calculation period

immediately preceding the effective date of the pension;

provided, however, for Participants whose initial pension

effective date is on or after March 1, 1993, and who retire

with 20 or more years of Pension Credit, the calculation

period will be the ten calendar year period immediately

preceding the last day in Covered Employment or, if higher,

the effective date of pension; provided further, however, that

the pension benefit of the Participant whose initial pension

effective date is on or after March 1, 1993, and who retires


26


(g) (Continued)

(ii) For Pensions Effective On and After January 1, 1976 (Continued)

(A) Wage Related (Continued)

with 20 or more years of Pension Credit will be no less than

that benefit accrued as of the end of any calculation period.

With respect to Participants who are credited with at least 65

days of Covered Employment in each of two calendar years

after January 1, 1985 and who will have an initial pension

effective date on or after January 1, 1987, the average base

monthly wages shall be calculated in accordance with sub-

paragraph 1 above, except that the referred to highest five

years need not be consecutive.

(B) Career Average

The average base monthly wage the Participant would have earned

had he been employed in Covered Employment a sufficient number

of days to accrue one year of Pension Credit in each year in which he

was credited with at least one quarter of a Pension Credit, provided,

however, that for purposes of this Sub-paragraph (ii) when

information of specific monthly wages excluding non-watch

allowance earned by a Participant during any period is not recorded

in the Plan Office, the Trustees may use wage data available that


27

Section 3.03 Regular Pension - Amount (Continued)

(g) (Continued)


(B) Career Average (Continued)

they believe will reasonably determine the wages that were or would

have been earned by the Participant during that period.

(C) For Pensions Effective On and After June 15, 1981

The base monthly wages shall include the non-watchstanding

allowance equivalent (28%) for employment below the rank of

Master. Inclusion of the non-watchstanding allowance equivalent

shall apply to all wages earned on and after June 16, 1976.

(D) For Pensions Effective On and After April 1, 2006

Notwithstanding anything herein to the contrary, the annual “pay” of

each Participant taken into account in determining benefit accruals

beginning on and after April 1, 2006, shall not exceed the following

limits:

Years of Pension Credit Pay Limit Up to 20 $ 90,000 20 but less than 25 $105,000 25 and over $120,000 These pay limits shall apply to a Participant on a Plan Year by Plan

Year basis, and the pay limit in effect for a Plan Year shall be


28


(g) (Continued)

(ii) For Pensions Effective On and After January 1, 1976) (Continued)

(D) For Pensions Effective On and After April 1, 2006 (Continued)

determined by a Participant’s years of Pension Credit on the first day

of such Plan Year. These pay limits shall cease to apply for a Plan

Year (but only with respect to Pension Credits accumulated during

such Plan Year) if the amount of the Plan’s minimum funding

contribution, as required by ERISA and the Internal Revenue Code,

falls to 16% of payroll plus Feinberg, or lower, for such Plan Year,

unless by ceasing to apply these pay limits and/or by using the

applicable schedule for accrual of Pension Credits under Section

3.03(d) for such Plan Year causes such minimum funding

contribution to reach more than 19% of payroll plus Feinberg for

such Plan Year. For purposes of this provision, “Feinberg” is

defined as compensation which is added to a Participant’s shipboard

wages, excluding overtime unless otherwise provided in an

applicable collective bargaining agreement, to ensure that any

vacation benefits payable under the M.M.&P. Vacation Plan re

included in the calculation of Participant’s “pay” under the terms of

this Plan. “Payroll” is defined as daily base wages plus


29


(g) (Continued)


(D) For Pensions Effective On and After April 1, 2006 (Continued)

nonwatchstanding allowance unless otherwise provided in an

applicable collective bargaining agreement.

(E) For Participants who are Masters working aboard the vessels,

Sulphur Enterprise and Energy Enterprise, the Participant’s base

monthly wages shall also include overtime wages to the extent

provided for in the applicable collective bargaining agreement

concerning the calculation of the Participant’s pension benefits,

subject to the limitations set forth in Subparagraph D hereinabove.

(iii) 401(k) Plan Participants

For purposes of a Participant who participates in an IRC Section 401(k)

deferred compensation plan, the term "pay" shall mean a Participant's

average base monthly wage before any voluntary salary reduction pursuant

to such a plan, provided the Participant's Employer contributed to this Plan

based on the Participant's pre-salary reduction wages.

(iv) Pilots

Pilots shall not receive pensions on base wages which exceed the base wages

of a Master, Class A, Dry Cargo.


30


(g) (Continued)

(v) COLA Adjustments

The cost of living bonus increases provided for in each current three-year

Offshore Collective Bargaining Agreement shall not be included for the

purpose of computing pension benefits for Participants retiring during the

period of such Agreement. (The first C.O.L.A. Adjustment was made

effective December 16, 1976.)

(vi) Annual Compensation Limitation

(A) For Plan years beginning on or after January 1, 1989 and before

January 1, 1997, the amount of a Participant's annual "pay" from any

single Employer that may be taken into account for any Plan purpose

shall not exceed $200,000, as that amount may be adjusted from time

to time by the Secretary of the Treasury under Code §401(a)(17).

Notwithstanding the foregoing, a Participant's accrued benefit shall

never be less than the Participant's accrued benefit on December 31,

1988.

(B) For Plan years beginning on or after January 1, 1997, the amount of a

Participant's "pay" that may be taken into account for any Plan

purpose in any Plan year is $150,000, as that amount may be

adjusted from time to time by the Secretary of the Treasury under

Code §401(a)(17).


31


(g) (vi) Annual Compensation Limitation (Continued)

(C) The annual “pay” of each Participant taken into account in

determining benefit accruals in any Plan Year beginning after

December 31, 2001, shall not exceed $200,000. Annual pay means

pay during the Plan Year or such other consecutive 12-month period

over which pay is otherwise determined under the Plan (the

determination period). For purposes of determining benefit accruals

in a Plan Year beginning after December 31, 2001, pay for any prior

determination period shall be $150,000 for any determination period

beginning in 1996 or earlier; $160,000 for any determination period

beginning in 1997, 1998, or 1999; and $170,000 for any

determination period beginning in 2000 or 2001.

(vii) Full Operating Status (“FOS”) Vacation Wages

For purposes of computing pension benefits for Participants retiring on or

after January 1, 2001, the term “pay” shall include vacation wages earned

after that date aboard Military Sealift Command and/or MARAD vessels in

FOS, in addition to the wages earned aboard such vessels in Reduced

Operating Status (“ROS”), provided, however, that such combined wages

shall not exceed the pension wages for a Master aboard an American Ship

Management C-10 vessel.


32

Section 3.04 Reduced Pension - Eligibility

A Participant who is not entitled to a Regular Pension shall be entitled to retire on a

Reduced Pension if he meets these three requirements:

(a) He has attained age 65; and

(b) He has at least 15 years of Pension Credit;

(c) He has earned at least one year of Pension Credit on and after June 16, 1965.

Section 3.05 Reduced Pension - Amount

With respect to Participants whose pension becomes effective on and after January

1, 1976, the Reduced Pension shall be a monthly amount equal to $16.25 for each year of Pension

Credit up to 20 years, but not less than 1.875% of "pay" for each year of Pension Credit up to 20

years.

With respect to Participants whose pension becomes effective on and after June 16,

1977, the Reduced Pension shall be a monthly amount equal to $16.25 for each year of Pension

Credit up to 20 years, but not less than 2% of "pay" for each year of Pension Credit up to 20 years.


33

Section 3.06 Early Retirement Pension - Eligibility

A Participant shall be entitled to retire on an Early Retirement Pension if he meets

these two requirements:

(a) He has attained age 60; and

(b) He has Pension Credits for at least 15 years and at least one of which was earned on

or after June 16, 1965.

Notwithstanding the foregoing, a Participant who accrued Pension Credit under the

Great Lakes and Rivers District and Maritime Pension Plan prior to September 1, 1989, shall be

entitled to retire on an Early Retirement Pension with respect to such Pension Credit if he is at least

age 50 and the sum of his age plus his total years of Pension Credit equals at least 75. The

remainder of such Participant's pension benefits shall become payable when he otherwise meets the

requirements of this Section.


34

Section 3.07 Early Retirement Pension - Amount

The Early Retirement Pension shall be a monthly amount determined as follows:

(a) There shall be determined the amount of Reduced Pension to which the

Participant would be entitled according to his years of Pension Credit if he

were 65 years of age when his Early Retirement Pension first becomes

payable.

(b) The monthly amount so determined shall be reduced by one-half of one

percent for each month by which the Participant is younger than 65 at the

time when his Early Retirement Pension first becomes payable.

(c) Notwithstanding subsections (a) and (b) above, the monthly benefit based

upon all Pension Credit earned by a Participant under the Great Lakes and

Rivers District and Maritime Pension Plan prior to September 1, 1989 shall

be reduced by one-half of one percent for each month by which the

Participant is younger than 62 at the time his Early Retirement Pension first

becomes payable.

(d) The amount determined above shall be rounded to the next higher multiple

of fifty cents.


35

Section 3.08 Disability Pension - Eligibility

A Participant shall be entitled to retire on a Disability Pension if on or after June 16,

1968, he is Totally and Permanently Disabled and has at least 10 years of Pension Credit at the time

of such Total and Permanent Disability.

If application is based on 20 years or more of Pension Credit, the Participant must

meet the same conditions applicable for a Regular Pension.

Section 3.09 Disability Pension - Amount

The monthly amount of the Disability Pension is the greater of:

(a) $16.25 times the number of years of Pension Credits with a maximum of 20; or

(b) The Actuarial Equivalent of his accrued benefit that he would be entitled to at his

Normal Retirement Age; or

(c) The Regular, Reduced or Early Retirement Pension for which the active Participant

may also be eligible on the date of his Retirement.

Section 3.10 Definition of Total and Permanent Disability A Participant shall be deemed Totally and Permanently Disabled only if, on medical

evidence that is satisfactory to the Trustees, he is found totally and permanently unable as a result of

bodily injury or disease to engage in any further employment as a Licensed Officer, and provided

further that he does not earn more than $400 a month in any other employment or gainful pursuit

whatsoever. The Trustees shall be the sole and final judges of Total and Permanent Disability and

entitlement to a Disability Pension and upon application of the Pensioner, they may waive the above

requirements as to earnings.


36

Section 3.10 Definition of Total and Permanent Disability (Continued)

In the event a Participant retires on a Disability Pension and has sufficient years of

Pension Credit to qualify him for a Regular Pension, the earnings limitation set forth in the above

paragraph shall not be applicable.

Section 3.11 Physical Examination

A Participant applying for a Disability Pension shall be required to submit to an

examination by a physician or physicians selected by the Trustees and may be required to submit to

re-examination periodically as the Trustees may direct.

Section 3.12 Military Pension

A Disability Pension shall not be payable for any disability resulting from services in

the Armed Forces of the United States if a military disability pension is payable thereon. No

Disability Pension shall be payable for any disability resulting from services in the Armed Forces of

any other country.


37

Section 3.13 Deferred Vesting Pension - Eligibility A Participant shall have the right to a Deferred Vesting Pension if:

(a) He has credit for at least 10 years of Vesting Service as defined in Article IV,

Section 4.06 and is not eligible for any other pension under this Plan.

(b) Effective January 1, 1999 for all Participants with at least one day of Pension

Credit on or after January 1, 1999, the Participant has credit for at least five

(5) years of Vesting Service as defined in Article IV, Section 4.06 and is not

eligible for any other pension under this Plan.

(c) He has less than 10 years of Vesting Service but has attained Normal

Retirement Age while a Participant in the Plan.

(d) Effective January 1, 1988, he is not covered by a collective bargaining

agreement, has at least 5 years of Vesting Service and at least one day of

Covered Employment after December 31, 1987.

A Deferred Vesting Pension shall be payable upon retirement after the Participant has

attained Normal Retirement Age. Notwithstanding any other provision of the Plan to the contrary, a

Participant's right to his normal retirement benefit is nonforfeitable upon the attainment of Normal

Retirement Age.


38

Section 3.14 Deferred Vesting Pension - Amount

Subject to the provisions of Article IV, Section 4.05(k), the monthly amount of the

Deferred Vesting Pension shall be the greater of $14.10 for each year of Pension Credit or 1.875%

of "pay" as defined in Section 3.03(f), for each year of Pension Credit earned by the Participant

during his years of Vesting Service.

Effective for Deferred Vesting Pensions first becoming payable on and after January

1, 1979, the monthly amount of such pension shall be the greater of $14.10 for each year or a

portion thereof of Pension Credit or 2% of "pay", as defined in Section 3.03(f), for each year or a

portion thereof of Pension Credit earned by the Participant during his years of Vesting Service.

Section 3.15 Deferred 10-Year Pension - Eligibility

A Participant shall have the right to a Deferred 10-Year pension if he has at least 10

years of Pension Credit and is not eligible for any other pension under this Plan. A Deferred 10-

Year Pension shall be payable upon retirement after the Participant has attained Normal Retirement

Age.

Section 3.16 Deferred 10-Year Pension - Amount

Subject to the provisions of Article IV, Section 4.05, the monthly amount of the

Deferred 10-Year Pension shall be the greater of $14.10 or 1.875% of "pay", as defined in Section

3.03(f), times the number of his Pension Credits. Effective for Deferred 10-year Pensions first

becoming payable on and after January 1, 1979, the monthly amount of the Deferred 10-Year

Pension shall be the greater of $14.10 or 2% of "pay", as defined in Section 3.03(f), times the

number of years of his Pension Credits.


39

Section 3.17 Increases in Regular Pension Rate

(a) In the event a Participant who is at least 55 years but less than 65 years of age, and

who has at least 20 years of Pension Credit retires between January 1, 1976 and June

15, 1977, but is entitled to the flat Regular Pension rate set forth in the Schedule in

Section 3.03(b) of this Article III, such Participant shall be entitled to an increase of

$100 per month in the amount of his pension payment until the end of the month in

which he reaches the age of 65.

(b) In the event a Participant, who is at least 55 years but less than 65 years of age, and

who has at least 20 years of Pension Credit, retires between January 1, 1976 and

June 15, 1977, and would be entitled to a pension based on percentage of Pay under

the Schedule in Section 3.03(b) of this Article III, such Participant shall be entitled,

until the end of the month in which he reaches the age 65, to a monthly pension

payment not less than a Participant with the same number of years of Pension Credit

would receive under the provisions of Paragraph (a), of this Section 3.17.

Section 3.18 Social Security Level Pension Income Option

Instead of a pension otherwise payable to him, a Participant Retiring on other than a

Disability Pension, between the ages of 55 and 65 may elect to have his pension increased until age

65 as nearly equal as possible to his combined retirement income, including his anticipated Social

Security Benefit, after that age. The adjustment in amount shall be made on the basis of Actuarial

Equivalence as established by the Trustees. The Social Security Level Pension Income Option may

be elected in addition to a Participant and Spouse Pension payable under the Plan, provided,

however, that such election shall not change, regardless of the date of death of the Participant, the


40

Section 3.18 Social Security Level Pension Income Option (Continued)

amount of the Participant and Spouse Pension which would otherwise be payable to the surviving

spouse. This Section is applicable to applications received on and after April 1, 1976.

Section 3.19 Cost of Living Adjustment

With respect to those Pensioners on the pension rolls as of January 1, 1978, as well

as each January 1 thereafter, and to their surviving Qualified Spouses, there shall be a Cost of

Living Adjustment determined under the following conditions:

(a) The adjustment of pensions shall be available only to Participants who have

accumulated at least 4 quarters of Pension Credit subsequent to June 16,

1975, and who have elected to receive their benefits as Pensioners in a form

other than under the Lump-Sum Payment Option set forth in Section 3.22 of

this Article III.

(b) Except as provided in Section (j) below, no adjustment shall be made for any

calendar year in the case of a Pensioner or surviving Qualified Spouse who,

while receiving pension benefits in the prior year, has earned in excess of the

maximum amount, if any, then allowable in such prior year under Social

Security without reduction in the Social Security payment. Notwithstanding

the foregoing, effective January 1, 2000, a Pensioner or surviving Qualified

Spouse over age 65 and under age 70 may have earnings of up to $24,000 in

the prior calendar year and remain eligible for a Cost of Living Adjustment

pursuant to this Section 3.19.


41

Section 3.19 Cost of Living Adjustment (Continued)

(c) A Pensioner retiring before January 1, 2001, and his surviving Qualified

Spouse, shall be entitled to no more than ten (10) Cost of Living

Adjustments in total. However, a Pensioner retiring on or after January 1,

2001, and his surviving Qualified Spouse, shall be entitled to no more than

eleven (11) Cost of Living Adjustments in total.

(d) The adjustments shall be determined on the basis of the Consumer Price

Index - U.S. City Average for Urban Wage Earners and Clerical Workers, as

published by the Bureau of Labor Statistics of the U.S. Department of Labor

(1967-100).

(e) The adjustment shall be based on changes in the said Index during each 12-

month period from July through June, commencing with the 12-month

period of July 1, 1976 through June 30, 1977 and each 12-month period

thereafter. In the event the Index increases 3% or more during any such

period, a 3% increase shall be paid to eligible Pensioners or their surviving

Qualified Spouses, commencing as of the following January 1st. The

adjustment is to be calculated on the gross monthly pension payment being

made at that time. In the event the Index does not increase by at least 3% in

any such period, there shall be no adjustment as of the following January 1st.


42


(f) Effective January 1, 2000 and January 1, 2002, Pensioners and/or their

Surviving Qualified Spouses who meet the eligibility provisions of sections

(a), (b) and (c) above will receive a 3% Cost of Living Adjustment without

regard to any change in the Consumer Price Index. Such Cost of Living

Adjustments will be counted against the maximum ten (10) or eleven (11)

Cost of Living Adjustments as provided under Section (c) above.

(g) Pensioners or their surviving Qualified Spouses who did not receive a Cost

of Living Adjustment under the provisions of Sections (a) through (e) above,

shall receive a 3% annual Cost of Living Adjustment in their pension

benefits in each of the three calendar years commencing January 1, 1982,

providing that in the prior calendar year, the earnings of the Pensioner or

surviving Qualified Spouse did not exceed the maximum then allowable

under Social Security without causing a reduction in the Social Security

payment.


43


(h) Pensioners or their surviving Qualified Spouses who did not receive a Cost

of Living Adjustment under the provisions of Sections (a) through (e) above

and who remained in continuous pension payment status since their effective

date of pension, shall receive a 3% Cost of Living Adjustment in their

pension benefits in each of the three calendar years commencing January 1,

1991, providing that in the prior calendar year, the earnings of the Pensioner

or surviving Qualified Spouse did not exceed the maximum then allowable

under Social Security without causing a reduction in the Social Security

payment.

(i) Pensioners who are on the Pension Rolls as of December 1, 1999, and who

retired prior to January 1, 1977 with twenty (20) or more years of Pension

Credit, and who are otherwise not eligible to Cost of Living Adjustments

under the terms of these Restated Regulations, will be paid a 13th Pension

check on a one-time basis in December 1999.


44


(j) Effective with Cost of Living Adjustments on or after January 1, 1994,

Pensioners who retired with twenty (20) or more years of Pension Credit or

their surviving Qualified Spouses may have earnings of up to $18,000 in the

prior calendar year and remain eligible for a Cost of Living Adjustment

pursuant to this Section 3.19. Effective with Cost of Living Adjustments on

and after January 1, 2000, Pensioners who retired with twenty (20) or more

years of Pension Credit, or their Surviving Qualified Spouses, may have

earnings of up to $24,000 in the prior calendar year and remain eligible for a

Cost of Living Adjustment pursuant to this Section 3.19. Effective with Cost

of Living Adjustments on and after January 1, 2002, Pensioners who retired

with twenty (20) or more years of Pension Credit, or their Surviving

Qualified Spouses, may have “Earnings” of up to $25,000 in the prior

calendar year and remain eligible for a Cost of Living Adjustment pursuant

to this Section 3.19. Effective January 1, 2002, “Earnings” shall mean

wages, earned income or remuneration or compensation for services,

whether reported on a Form W-2 or Form 1099, and includes vacation or

severance pay, payment for unused sick leave, fees and commissions but

does not include passive investment income such as dividends, interest,

capital gains, rents or royalties.


45


(j) (Continued)

Effective with Cost of Living Adjustments on and after January 1, 2005,

Pensioners who retired with twenty (20) or more years of Pension Credit, or

their Surviving Qualified Spouses, may have Earnings of up to $27,000 in



















46


(j) (Continued)

Effective with Cost of Living Adjustments on and after January 1, 2011, but

subject to Section 3.19(k) and Section 9.06 hereinafter, Pensioners who

retired with twenty (20) or more years of Pension Credit, or their Surviving

Qualified Spouses, may have Earnings of up to $32,000 in the prior calendar

year and remain eligible for a Cost of Living Adjustment pursuant to this

Section 3.19.

(k) Individuals, who first become a Participant in the Plan on and after March 1,

2006, shall not be eligible to receive any Cost of Living Adjustment in their

pension benefits under the terms of these Second Restated Regulations

unless specifically approved by the Trustees.

Section 3.20 Incentive Retirement Program

In the event a Participant who has at least 20 years of Pension Credit, and retires

between January 1, 1979 and June 16, 1981, and is entitled to the flat Regular Pension set forth in

Section 3.03(b) of this Article III, such Participant shall be entitled to the following Incentive

Retirement Supplement, in addition to his flat Regular Pension, provided he has the necessary years

of Pension Credit, as specified herein.


47

Section 3.20 Incentive Retirement Program (Continued)

Years of Monthly Total Pension Credit Incentive Supplement Pension Payable 20 $275 $ 600 21 295 640 22 315 680 23 335 720 24 355 760 25 375 800 26 406 840 27 437 880 28 468 920 29 499 960 30 530 1,000 31 570 1,040 32 610 1,080 33 650 1,120 34 690 1,160 35 730 1,200

The Incentive Retirement Supplement shall be paid to all eligible Participants

retiring under the conditions set forth herein unless the Participant is eligible for a Wage-Related

Pension and it is greater than the scheduled flat pension benefit plus the Incentive Retirement

Supplement, in which case only the Wage-Related Pension will be paid.

A Participant, who upon his retirement is entitled to receive a benefit under the

Incentive Retirement Program, and who, subsequently, is permitted to return to Covered

Employment in accordance with the provisions of these Regulations shall, upon re-retirement,

receive the pension benefit he would have been eligible for at the time of his initial retirement

without payment of the Incentive Retirement Supplement, except as provided otherwise in Section

6.10.


48

Section 3.21 Partial Lump-Sum Payment Option

(a) Pensioners retiring on a Regular, Early or Reduced Pension on or after January 1,

1983, shall be eligible to receive a lump sum from the Plan equal to 12 monthly

pension benefits. In the event a Pensioner elects to receive the lump-sum payment,

his monthly benefit shall be reduced in accordance with generally accepted actuarial

principles and based on an investment return assumption equal to the PBGC close-

out rate for immediate annuities under terminated single employer plans (previously

29-C.F.R. Part 2619) in effect on January 1, or July 1 preceding the retirement

effective date, and Group Annuity Table of 1971 mortality rates.

Effective January 1, 2000, Pensioners retiring on a Regular, Early or Reduced

Pension on or after January 1, 2000 shall be eligible to receive a lump sum from the

Plan equal to twelve (12) monthly pension benefits. In the event a Pensioner elects

to receive a lump-sum payment, his monthly benefit shall be reduced in accordance

with generally accepted actuarial principles and based on the Applicable Interest

Rate and Applicable Mortality Table for the calendar year that includes the date of

distribution. Notwithstanding anything herein to the contrary, effective January 1,

2000 through one year after the date of this Amendment is adopted, any distribution

under this Section 3.21(b) will be determined at either the date for determining the

Applicable Interest Rate prior to the date of this Amendment or the date for

determining the Applicable Interest Rate after this Amendment, whichever results in

the larger distribution.


49

Section 3.21 Partial Lump-Sum Payment Option (Continued)

For partial lump-sum payments distributed between January 1, 2000 and June 7,

2000, the interest rate will not be greater than the Applicable Interest Rate for the

month of January 2000 or July 2000 preceding the retirement effective date.

(b) Effective October 1, 2000, Pensioners retiring on a Regular, Early or Reduced

Pension on or after October 1, 2000 shall be eligible to receive a lump-sum from the

Plan equal to twelve (12), twenty-four (24) or thirty-six (36) monthly pension

benefits. In the event a Pensioner elects to receive a lump-sum payment, his

monthly benefit shall be reduced in accordance with generally accepted actuarial

principles and based on the Applicable Interest Rate and Applicable Mortality Table

for the calendar year that includes the date of distribution.

(c) The above lump-sum payment elections will not be effective unless the Participant

and Spouse Pension has been properly rejected in accordance with Article V of the

Plan not more than 180 days prior to retirement, and unless elected in writing by the

pension applicant on a form prescribed by the Trustees and received by the Plan

Office at least six months prior to his retirement date, provided, however, the six

months prior notice shall not be required for any Participant retiring prior to July 1,

1982, and provided further, however, the six months prior notice shall not be

required for any Participant retiring on or after October 1, 2000 and on or before

March 1, 2001.


50

Section 3.21 Partial Lump-Sum Payment Option (Continued)

(c) (Continued)

An election of the Lump-Sum Payment Option in accordance with the procedures

outlined in Section 3.22 will be deemed at the option of the pension applicant to

include an election of the Partial Lump-Sum Payout option, including the filing of

the written election form prescribed by the Trustees and received by the Plan Office

within the time periods prescribed herein. Any Cost of Living Adjustment to be

applied to pensions and any Participant and Spouse benefits shall be calculated on

the basis of the monthly benefit payable after the lump-sum adjustment.

Section 3.22 Lump-Sum Payment Option

(a) A Participant who accumulates one or more years of Pension Credit after January 1,

1990, whose Pension first becomes effective on or after March 31, 1991 and who had

attained at least age 62 as of such pension effective date with at least 30 years of

Pension Credit, may elect to receive his benefit in the form of a Lump-Sum Payment.

If the Lump-Sum Payment Option is validly elected, the Participant shall receive in

lieu of any other benefits from the Plan a single payment.


51

Section 3.22 Lump-Sum Payment Option (Continued)

(a) (Continued)

For the purposes of this Section 3.22 only, the single payment shall be determined by

multiplying the monthly amount of such pension by the factor set forth in Appendix C

for the age of the Employee, based on his age in years and months on the date on

which such single payment will be made. The factors used in calculating the Lump-

Sum Payment shall not include a factor for any cost of living adjustment as provided

under Section 3.19 of this Article III.

This Lump-Sum Option will not be effective unless elected in writing by the

Participant on a form prescribed by the Trustees and received by the Plan Office at

least two (2) years prior to his retirement date and provided the Participant and Spouse

Benefit has been properly rejected pursuant to Article V of this Plan not more than

180 days prior to his retirement. The two (2) year filing requirement shall be waived

for any employee who files an application not later than February 28, 1992 and retires

prior to March 31, 1993. In addition, at the time of retirement evidence of good health

will be required including but not limited to evidence of a medical examination and

medical tests performed not earlier than 90 days from the effective date of Pension.


52


(b) Effective July 1, 1992, a Participant who accumulates one or more years of Pension

Credit after January 1, 1990, whose pension first becomes effective on or after July 1,

1992 and who had attained at least age 60 as of such pension effective date with at

least 28 years of Pension Credit, may elect to receive his benefit in the form of a

Lump-Sum Payment. If the Lump-Sum Payment Option is validly elected, the

Participant shall receive in lieu of any other benefits from the Plan a single payment.


multiplying the monthly amount of such pension by the greater of the factors set forth

in Appendix C or factors based on an investment assumption equal to the PBGC close


29 C.F.R. Part 2619) in effect on January 1 preceding the retirement date and Group

Annuity Table of 1951 mortality rates for the age of the Employee, based on his age

in years and months on the date on which single payment will be made. The factors

used in calculating the Lump-Sum Payment shall not include a factor for any cost of

living adjustment as provided under Section 3.19 of this Article III.

This Lump-Sum Option will not be effective unless elected in writing by the



Benefit has been properly rejected pursuant to Article V of this Plan not more than

180 days prior to his retirement.


53


(b) (Continued)

The two (2) year filing requirement shall be waived for any employee who files an

application not later than June 30, 1993 and retires prior to July 31, 1994.

In addition, at the time of retirement evidence of good health will be required

including but not limited to evidence of a medical examination and medical tests

performed not earlier than 90 days from the effective date of Pension.

(c) Effective March 1, 1993, a Participant who accumulates one or more years of Pension

Credit after January 1, 1990, whose pension first becomes effective on or after March

1, 1993 and who had attained at least age 58 as of such pension effective date with at

least 28 years of Pension Credit, may elect to receive his benefit in the form of a

Lump-Sum Payment.

If the Lump-Sum Payment Option is validly elected, the Participant shall receive in

lieu of any other benefits from the Plan a single payment.


54


(c) (Continued)

If a Participant, whose pension first became effective prior to March 1, 1993 and who

elected a payment option other than the Lump-Sum Option, returned to Covered

Employment subsequent to retirement and otherwise meets all eligibility requirements

for the Lump-Sum Payment Option, he may elect to receive the Lump-Sum Payment

Option for the portion of the Participant's benefit that accrues on or after the

Participant returns to Covered Employment, subject to the provisions of paragraphs

(e), (f) and (k) below.


multiplying the monthly amount of such pension by the greater of the factors set forth

in Appendix C or factors based on an investment assumption equal to the PBGC close


29-C.F.R. Part 2619) in effect on January 1 preceding the retirement date and Group

Annuity Table of 1951 mortality rates for the age of the Employee, based on his age

in years and months on the date on which single payment will be made. The factors

used in calculating the Lump-Sum Payment shall not include a factor for any cost of

living adjustment as provided under Section 3.19 of this Article III.


55


(c) (Continued)

This Lump-Sum Payment Option will not be effective unless elected in writing by the



benefit has been properly rejected pursuant to Article V of this Plan not more than 180

days prior to his retirement, or if later, the date his benefit is approved by the Trustees

pursuant to paragraph (k) of this Section. The two (2) year filing requirement shall be

waived for any employee who files an application not later than February 28, 1994

and retires prior to March 31, 1995. In addition, at the time of retirement, evidence of

good health will be required.


56


(d) Effective January 1, 1994, the amount of the Lump-Sum Payment shall be equal to the

greater of: (1) the Lump-Sum Payment accrued by the Participant as of December 31,

1993 pursuant to paragraph (c) above; or (2) the single payment derived by

multiplying the Participant's monthly pension amount by the greater of the factors set

forth in Appendix C or the factors based on an investment assumption equal to the

PBGC close-out rate for immediate annuities under terminated single employer plans

(previously 29-C.F.R. Part 2619) in effect on January 1 preceding the retirement date

inflated by 120%, and Group Annuity Table of 1951 mortality rates, based on the

Employee's age in years and months on the date on which such single payment is

made. The factors used in calculating the Lump-Sum Payment shall not include a

factor for any cost of living adjustment as provided under Section 3.19 of this Article

III.

For lump-sum amounts whose value would be $25,000.00 or less had an uninflated

PBGC close-out rate for immediate annuities been used in item (2) above, the amount

of the Lump-Sum Payment under item (2) shall be equal to the single payment

derived by multiplying the Participant's monthly pension amount by the greater of the

factors set forth in Appendix C or the factors based on an investment assumption

equal to the PBGC close-out rate for immediate annuities under terminated single

employer plans (previously 29-C.F.R. Part 2619) in effect on January 1 preceding the

retirement date and Group Annuity Table of 1951 mortality rates, based on the


57



made.

(e) Effective January 1, 1995, the amount of the Lump-Sum Payment shall be equal to the

greater of (1) the Lump-Sum Payment accrued by the Participant as of December 31,

1993 pursuant to paragraph (c) above; or (2) the single payment derived by

multiplying the Participant's monthly pension amount by the greater of the factors set

forth in Appendix C or the factors based on an investment assumption equal to the

PBGC close out rate for immediate annuities under terminated single employer plans

(previously 29-C.F.R. Part 2619) in effect on January 1 preceding the retirement date

inflated by 20%, and Group Annuity Table of 1971 mortality rates, based on the


made. The factors used in calculating the Lump-Sum Payment shall not include a

factor for any cost of living adjustment as provided under Section 3.19 of this Article

III.

For lump-sum amounts whose value would be $25,000 or less had an uninflated

PBGC close-out rate for immediate annuities been used in item (2) above, the amount

of the Lump-Sum Payment under item (2) shall be equal to the single payment

derived by multiplying the Participant's monthly pension amount by the greater of the

factors set forth in Appendix C or the factors based on an investment assumption

equal to the PBGC close-out rate for immediate annuities under terminated single

employer plans (previously 29-C.F.R. Part 2619) in effect on January 1 preceding the


58


retirement date and Group Annuity Table of 1971 mortality rates, based on the


made.

(f) Effective January 1, 1996, the amount of the Lump-Sum Payment shall be equal to the

greater of:

(1) the Lump-Sum Payment accrued by the Participant as of December 31, 1993

pursuant to paragraph (c) above; or

(2) the single payment derived by multiplying the Participant's monthly pension

amount by both:

(i) a fraction, the numerator of which is the total years of Pension Credit

accumulated as of January 1, 1996, and the denominator of which is

the Participant's total Pension Credits as of the date of retirement, and

(ii) the greater of the factors set forth in Appendix C or the factors based

on an investment assumption equal to the PBGC close-out rate for

immediate annuities under terminated single employer plans

(previously 29-C.F.R. Part 2619) in effect on January 1 preceding the

retirement date inflated by 20%, and Group Annuity Table of 1971

mortality rates, based on the Employee's age in years and months on

the date on which such single payment is made. The factors used in

calculating the Lump-Sum Payment shall not include a factor for any


59


(f) (2) (ii) (Continued)

cost of living adjustment as provided under Section 3.19 of this Article

III.

For lump-sum amounts whose value would be $25,000 or less had an

uninflated PBGC close-out rate for immediate annuities been used in

item (2) above, the amount of the Lump-Sum Payment under item (2)

shall be equal to the single payment derived by using in item (b) above

the greater of the factors set forth in Appendix C or the factors based

on an investment assumption equal to the PBGC close-out rate for

immediate annuities under terminated single employer plans

(previously 29-C.F.R. Part 2619) in effect on January 1 preceding the

retirement date and Group Annuity Table of 1971 mortality rates,

based on the Employee's age in years and months on the date on which

single payment is made.

(g) Effective January 1, 2000, the amount of the Lump-Sum Payment shall be determined

in accordance with generally accepted actuarial principles and based on the

Applicable Interest Rate and Applicable Mortality Table for the calendar year that

includes the date of distribution. Notwithstanding the foregoing, effective January 1,

2000 through one year after the date this Amendment is adopted, any distribution

under this Section 3.22 will be determined at either the date for determining the

Applicable Interest Rate prior to the date of this Amendment or the date for


60


(g) (Continued)

determining the Applicable Interest Rate after this Amendment, whichever results in

the larger distribution. The factors used in calculating the Lump-Sum Payment

shall not include a factor for any cost of living adjustment as provided under Section

3.19 of this Article III.

(h) If an Employee who has made a timely election of the Lump-Sum Payment Option

shall die prior to the effective date of his retirement, such election shall automatically

be revoked. In such event, survivor benefits shall be payable in accordance with

Article V.

(i) Notwithstanding anything herein to the contrary, no payments will be made pursuant

to any election of the Lump-Sum Payment Option if the Plan's Actuarial Consultant

certifies that, based on the latest actuarial valuation, the actuarial value of Plan assets

for valuation purposes is exceeded by the actuarial reserve for retired lives.

(j) If, as a result solely of the provisions of Subsection (i), a payment may not be made

under the Lump-Sum Payment Option, the Participant who has elected such option

may elect to either receive his benefit in any form permitted under the Plan or to

postpone his application for benefits until a new actuarial valuation is performed by

the Plan's Actuarial Consultant.


61


(k) Effective June 3, 1993, notwithstanding the provisions of paragraphs (a) through (f),

the benefit payable under this Section shall not become effective until approved by the

Trustees at their nearest regularly scheduled meeting and provided the Participant is

alive and in good health at the time of such payment under this Section.

Effective October 1, 1994, approval of the Lump-Sum Payment Option under this

paragraph (k) shall only require the approval of the Chairman and Secretary of the

Board of Trustees, provided the Participant is alive and in good health at the time of

such payment under this Section. A Participant who makes application for the Lump-

Sum Payment Option hereunder shall provide evidence of “good health” in such form

as prescribed by the Trustees, as well as an authorization to review the Participant’s

health claims under the M.M.&P. Health and Benefit Plan.

(l) Notwithstanding the provisions of paragraphs (a) through (k), this Section 3.22 shall

not apply to allow a Lump-Sum Payment with respect to the portion of a Participant's

benefit that accrues on or after January 1, 1996. If a Participant elects to receive the

portion of his benefit that accrues before January 1, 1996 in the form of a Lump-Sum

Payment, the portion of a Participant's benefit that accrues on or after January 1, 1996

shall be paid in any form otherwise allowed under the Regulations, except that such

portion shall not be paid in the form of a partial lump-sum payout under Section 3.21.


62

Section 3.23 Offset of Benefits for Certain Administrative Office Employees

In the case of a Participant employed by the Administrative Office (other than the

M.A.T.E.S. Program) entitled to additional Pension Credit pursuant to Section 4.03(h), the amount of

any pension payable under this Article III shall be reduced by any pension amount he accrued and is

to be paid under any other multiemployer pension plan with respect to the period of service from the

date he became employed by the Administrative Office to the date he became a Participant under the

Plan.

Section 3.24 Action of Trustees

The Trustees shall have full power to make such interpretations, clarifications and

regulations as may be necessary with respect to the provisions of this Plan, and any such

determinations by the Trustees shall be binding upon all parties affected.

M.M.& P. PENSION PLAN THIRD RESTATED REGULATIONS ARTICLE IV

ACCUMULATION OF PENSION CREDITS AND VESTING SERVICE

63

Section 4.01 Outline

The purpose of this Article is to define the manner in which Participants accumulate

Pension Credit and Vesting Services toward eligibility for a pension. The general intention is to

provide benefits to a Participant who retires after long years of service as a Licensed Officer,

employed within the scope of this Plan. This Article also defines the circumstances under which a

person may lose the Pension Credit and Vesting Service which he may previously have

accumulated.

Section 4.02 Pension Credit for Periods Before October 1, 1955 (Past Service)

(a) A Participant shall be entitled to Past Service Credit (Pension Credit for service prior

to October 1, 1955) only if in the period January 1, 1951 to September 30, 1955, he

worked in Covered Employment for at least 200 days and, in that period of four

years and nine months, he had not retired from the Industry, but had remained

(unless disabled) available for employment as a Licensed Officer in the American

Merchant Marine. Continued membership in the Organization shall be evidence of

continued availability for such employment.



64


(Continued) (a) (Continued)

If the Participant, during the period January 1, 1951 to September 30, 1955, worked

in Covered Employment for at least 200 days or if the Participant remained (unless

disabled) available for employment as a Licensed Officer in the American Merchant

Marine (continued membership in the Organization shall be evidence of continued

availability of such employment), the Participant shall be entitled to Past Service

Credit if he earned 1,600 days of Pension Credit between October 1, 1955 and

December 31, 1965; provided, however, that a Participant will not receive more than

four quarters of Pension Credit in any one calendar year.

(b) The requirement that a Participant during the period January 1, 1951 to September

30, 1955, worked in Covered Employment for at least 200 days, shall also be waived

if all of the following conditions are met:

(i) During that period of four years and nine months, the Participant was unable

to accumulate 200 days of Covered Employment solely because of physical

disability.

(ii) After September 30, 1955, the Participant returned to Covered Employment

and earned at least three years of Pension Credit.

(iii) During the period January 1, 1935 to January 1, 1951, the Participant had

earned ten (10) years of Past Service Credit.



65


(Continued)

(c) The requirements of the foregoing Section 4.02 (a) and (b) shall be waived if the

Participant had at least 15 years of Pension Credit in any 25 consecutive calendar

years after January 1, 1951 or 20 years of Pension Credit in any 30 consecutive

calendar years after January 1, 1951 or 25 years of Pension Credit in any 35

consecutive calendar years after January 1, 1951, and did not receive pension benefits

prior to June 16, 1978.

(d) If a person is entitled to Past Service Credit, they shall be granted on the following

basis:

(i) He shall be credited with Past Service on the basis of employment as a Licensed

Officer on oceangoing vessels in the American Merchant Marine in the period

January 1, 1935 to September 30, 1955, provided that such employment was in a

classification then covered (or later covered) by a Collective Bargaining

Agreement with the Organization. Such service shall be credited by the Board of

Trustees on the basis of written evidence presented by the Participant and

satisfactory to the Trustees. On the basis of such employment, Pension Credit

shall be granted in quarter-year units as follows depending upon the number of

days of such employment in each calendar year:

Number of Days of Creditable Number of Employment in a Calendar Year Quarters Credited Less than 50 -0- 50 to 99 1 100 to 149 2 150 to 199 3 200 or more 4



66

Section 4.02 Pension Credit for Periods Before October 1, 1955 (Past Service) (Continued)

(ii) It is recognized that in many cases it will be difficult to prove years of service

prior to October 1, 1955. Consequently, if a Participant is entitled to Past

Service Credit, he shall be credited with past service for each calendar quarter

during any part of which he was a member of the Organization.

Section 4.03 Pension Credit for Periods On or After October 1, 1955

(a) Periods Prior to January 1, 1973

Except as otherwise provided in this Section, a Participant shall be given one year of

Pension Credit for each calendar year he was employed for at least 200 days in

Covered Employment. If in a calendar year he was employed for less than 200 days

in Covered Employment, he shall receive Pension Credit in quarter-year units as

follows:

Days of Covered Quarters Employment in the Calendar Year to be Credited Less than 50 -0- 50 to 99 1 100 to 149 2 150 to 199 3 200 or more 4

The provisions of this Section and of the preceding Section 4.02 shall not be

construed to allow total Pension Credits for more than four quarters for 1955.



67

Section 4.03 Pension Credit for Periods On or After October 1, 1955 (Continued)

(b) Periods January 1, 1973 to January 1, 1976

Except as otherwise provided in this Section, a Participant shall be given one year of

Pension Credit for each calendar year he is employed for at least 280 days in

Covered Employment. If in a calendar year he was employed for less than 280 days

in Covered Employment, he shall receive Pension Credit in quarter-year units as

follows:

Days of Covered Quarters Employment in a Calendar Year to be Credited

Less than 70 -0- 70 to 139 1 140 to 209 2 210 to 279 3 280 or more 4

(c) Periods On and After January 1, 1976

(i) Except as otherwise provided in this Section, effective January 1, 1976, a

Participant shall be given Pension Credit for days of Covered

Employment in accordance with the following schedule:



68

Section 4.03 Pension Credit for Periods On or After October 1, 1955

(Continued)

(c) (i) Periods On and After January 1, 1976 (Continued)

Days of Covered Quarters Employment in a Calendar Year to be Credited Less than 70 -0- 70 to 124 .25 125 to 139 .4 140 to 179 .5 180 to 209 .6 210 to 269 .75 270 to 279 .8 280 or more 1.0

(ii) Except as otherwise provided in this Section, and in lieu of the provisions of

Sub-paragraph (i) above, Participants who are Employees of the

Administrative Office, or Officials, Representatives, or Employees of the

Organization or employed in shoreside employment such as Port Captain,

shall be given one-tenth (.1) of one year of Pension Credit for each month or

part of a month of such Covered Employment provided that no Participant

will receive more than one year of Pension Credit for any one calendar year.



69


(d) Periods on and After January 1, 1987

(i) Except as otherwise provided in this Section and subject to the satisfaction of

Sub-paragraph (ii) below, for Covered Employment on and after January 1,

1987, a Participant shall earn one Pension Credit for each calendar year in

which he is credited with at least 260 days in Covered Employment.

If the Participant is credited with at least 65 but less than 260 days in

Covered Employment in any calendar year (after 1986), he shall receive

Pension Credit in the proportion of the days of credited Covered

Employment to 260.

(ii) This sub-section (d) shall be available to all Participants who are credited

with at least 65 days of Covered Employment in each of two calendar years

after January 1, 1985.

(e) General

Except as provided in Section 4.06, with respect to Vesting Service, on and after

January 1, 1964, a Participant will not receive Pension Credit for employment after

he reaches the age of 65, except that a Participant who is at least 60 years of age and

had at least 10 years of Pension Credit on January 1, 1964 shall be entitled to earn

additional Pension Credit up to a maximum of 15 years of Pension Credit regardless

of his age provided, however, that a Participant who becomes age 55 during the

period January 1, 1965 to December 31, 1968, and who had accumulated Credit by

the time he reached age 65, shall be entitled to earn Pension Credit up to December

31, 1968; and provided further, that a Participant who accumulated at least 25 years

of Pension Credit when he reached age 65 shall be entitled to earn Pension Credits



70


(e) General (Continued)

in the period January 1, 1965 to December 31, 1968, and provided further that a

Participant who became age 65 prior to January 1, 1973 and who had accumulated at

least 30 years of Pension Credit when he reached age 65, shall be entitled to earn up

to two years of Pension Credit after June 15, 1972. Notwithstanding the foregoing

and effective on and after July 1, 1976, a Participant who reaches age 65, and who

has less than 10 years of Pension Credit at that time, shall be entitled to earn

additional Pension Credit up to a maximum of 10 years of such Pension Credit,

regardless of his age. For the purpose of calculating pay as it relates to Wage-

Related Pensions, the pay earned by a Participant in Covered Employment on or

after age 65 shall be used whether or not he receives years of Pension Credit for any

employment after age 65. Notwithstanding the foregoing, Pension Credit shall be

granted for service after age 65 for all members retiring between June 16, 1981 (July

1, 1981) and January 1, 1983.

Notwithstanding the foregoing, Pension Credit shall be granted for service after

age 65 for Participants who have at least one day in Covered Employment or retire

on or after January 1, 1988.



71


(f) Pension Credits for Deferred Vesting Pension

Notwithstanding the foregoing for purposes of Deferred Vesting Pension, a

Participant, effective January 1, 1976, shall not be credited with any Pension Credit

during the contribution period for any calendar year in which he failed to earn at

least one year of Vesting Service.

(g) "Day Bank" for Excess Days

Active Employees who earned at least one (1) quarter of Pension Credit on and

after January 1, 1993, and who retire on and after July 1, 1999, will be permitted to

fill in time to increase Pension Credit as follows:

(i) Covered Employment days in excess of required days necessary to accrue a

quarter(s) or fraction thereof of Pension Credit in any calendar year(s) prior

to January 1, 1987 will be used to establish a "bank reserve", provided,

however, that the Employee did not accrue a full year of Pension Credit in

any of the calendar years for which he claims excess days while working in

Covered Employment under an Offshore Collective Bargaining

Agreement.

(ii) The Active Employee will be able to apply the above "reserve days" to

years prior to January 1, 1987 in which he worked in Covered Employment

under an Offshore Collective Bargaining Agreement but accrued less than

one (1) year of Pension Credit.



72


(g) (Continued)

(iii) “Day Bank” for Excess Days (Continued)

Pension Credit will be granted up to a maximum of one (1) year Pension

Credit per calendar year pursuant to Article IV of these Restated

Regulations.

(h) For purposes of this Section 4.03, a Participant employed prior to 1983 by the

Administrative Office (other than the M.A.T.E.S. Program) in a position covered by

a collective bargaining agreement and who subsequently became a supervisor in the

Administrative Office (other than the M.A.T.E.S. Program) not covered by a

collective bargaining agreement shall be entitled to receive Pension Credit just as if

he were working in Covered Employment as of the first date he became employed

by the Administrative Office.

Section 4.04 Credit for Non-Working Periods

This section recognizes certain periods when a Participant is not working or was not

actually at work in Covered Employment but is to receive Pension Credit just as if he were working

in Covered Employment. This provision applies only if the Participant has or had Pension Credit

for service prior to the period of absence. Periods of absence from Covered Employment are to be

credited as if they were periods of work in Covered Employment, if they were due to the following

reasons:



73

Section 4.04 Credit for Non-Working Periods (Continued)

(a) Military Service of the U.S. in the time of war, or armed conflict or pursuant to a

national conscription law, provided the Participant makes himself available for

Covered Employment within 120 days after discharge or separation, or 120 days

after recovery from a disability continuing after his discharge or separation from

military service, but excluding service by reason of voluntary re-enlistment, or

continuation of a commission, for more than one year except as required by law in

periods which the Trustees have determined to be periods of war or armed

conflict. In appropriate cases and in order to accomplish substantial justice, the

Trustees shall waive the requirements for returning to Covered Employment

within the 120-day period herein specified when the Trustees find that the failure

to do so was for good cause and the Participant had not actually left the Industry.

In addition, time associated with a leave of absence due to military service to the

extent not provided for above but required by Federal law will also be credited.

Notwithstanding any provision of this Plan to the contrary, contributions, benefits

and Pension Credit with respect to qualified military service will be provided in

accordance with § 414(u) of the Internal Revenue Code.

(b) Disability for the period disability or hospital benefits were paid under the

Regulations of the M.M.& P. Health & Benefit Plan and prior to April 1, 1957,

under any insurance policy furnished by the Trustees of the M.M.&P. Health &

Benefit Plan.



74

Section 4.04 Credit for Non-Working Periods (Continued)

(c) Effective January 1, 1993, period of license suspension where such suspension by

the U.S. Coast Guard is due to the Participant’s use of a physician-prescribed drug

for the stabilization of a physical or mental condition and such suspension is

ultimately overturned by the administrative law judge or courts but only if the

amount of Pension Credit for such suspension period would enable the Participant

or his Beneficiary to be eligible for a Regular Pension.

Section 4.05 Breaks in Service-Cancellation of Pension Credits Notwithstanding anything in this section to the contrary, a Participant who is not covered

by a collective bargaining agreement and has one day of Covered Employment after

December 31, 1988, shall be immune from a cancellation of his Pension Credit if he has at

least five (5) Years of Vesting Service.

(a) Purpose. These pension regulations are intended to provide benefits to

Participants who remain in Covered Employment more or less continuously over a

period of years, and up to the time they retire on a pension and, in some

circumstances, to Participants who have a substantial number of years of Pension

Credit. Except in the specific cases provided, if a person leaves Covered

Employment for a substantial period of time, the Regulations provide for

cancellation of that person's previous Pension Credits.



75

Section 4.05 Breaks in Service-Cancellation of Pension Credits (Continued)

(b) Continuation of Credit

Effective January 1, 1976, if a Participant has at least 10 years of Pension Credit,

there shall be no cancellation of such credit for the purpose of entitling him to a

Regular, Reduced, Early Retirement or Deferred 10-Year Pension during any period

he is not employed in Covered Employment except that during the period he is not

working in Covered Employment, he has nevertheless remained available for work

in such Employment.

The Trustees shall take all factors presented by the Participant into consideration in

determining availability but, except as waived in advance by the Organization, a

Participant shall not be considered available for work during any period he is

employed aboard a vessel documented under the laws of the United States, which is

not covered by a Collective Bargaining Agreement with the Organization.

Regular registration for work or continuance of membership in the Organization, as

certified to by the Organization, shall be deemed satisfactory evidence of such

availability.



76


(c) Three-Year Break-in-Service (Prior to January 1, 1976)

Except as otherwise provided in this section, it shall be considered a Break-in-

Service and a Participant's previous Pension Credit shall be cancelled if, after

January 1, 1956 and before January 1, 1976, he fails to average at least 60 days of

work per year in Covered Employment within any period of three consecutive

calendar years; provided, however, that such cancellation shall be waived in the

case of a Participant who meets the following requirements:

(i) He had earned at least 10 years of Pension Credit prior to the Break in

Service; and

(ii) He subsequently returns to Covered Employment and earns at least 12

quarters (three years) of Pension Credit; and

(iii) He has remained at all times available for work in Covered Employment.

The Trustees shall take all factors presented by the Participant into

consideration in determining availability. Regular registration for work or

continuance of membership in the Organization shall be deemed

satisfactory evidence of such availability.



77


(d) One-Year Break-in -Service (Prior to January 1, 1976)

An additional rule shall also apply with respect to absence from Covered

Employment. If a person does not have at least 15 years of Pension Credit on

December 31, 1974, it shall be considered a Break-in-Service and his previous

Pension Credit shall be cancelled, if he does not work at least 60 days in Covered

Employment in the period January 1, 1975 to December 31, 1975; provided,

however, such cancellation shall be waived in the case of a Participant who works

at least 60 days in Covered Employment during one calendar year subsequent to

January 1, 1976.

(e) In addition to the foregoing, a Participant who incurred a Break-in-Service under

this Plan prior to January 1, 1976, shall have such Break-in-Service waived if the

Participant, excluding the period of his Break, had at least 15 years of Pension

Credit in any 25 consecutive calendar years after January 1, 1951, or 20 years of

Pension Credit in any 30 consecutive calendar years after January 1, 1951 or 25

years of Pension Credit in any 35 consecutive calendar years after January 1, 1951,

and did not receive pension benefits prior to June 16, 1978.



78

Section 4.05 Breaks-in-Service-Cancellation of Pension Credits (Continued)

(f) Break-in-Service After January 1, 1976

(i) General If a person has a Break-in-Service before he has earned Vested

Status, as defined in Section 6.12, it has the effect of canceling his

Participation in the Plan, his previously credited years of Vesting Service,

and his previous years of Pension Credit. However, a Break may be

temporary, subject to repair by a sufficient amount of subsequent service.

A longer Break may be permanent.

(ii) One-Year Break-in-Service

(A) A person has a One-Year Break-in-Service in any calendar year

after 1975 in which he fails to complete at least 44 Days of Service

as defined in Section 4.06 of this Article (at least 2 months of

Service for non-maritime Participants.)

(B) Time of employment with a contributing Employer in non-Covered

Employment or military service if creditable under Section 4.04(a),

or Section 4.05 (g), (h), (i), (j), or Section 4.06(a) (iii) of this

Article, shall also be considered Days of Service in determining

whether a Break-in-Service has been incurred.



79


(f) Break-in-Service After January 1, 1976 (Continued)

(ii) One-Year Break-in-Service (Continued)

(C) A One-Year Break-in-Service is repairable, in the sense that its

effects are eliminated if, before incurring a Permanent Break-in-

Service, the Participant subsequently earns a year of Vesting

Service. More specifically:

(1) Participation is restored in accordance with the provision of

Section 2.04, and

(2) Previously earned years of Vesting Service and Pension Credit

are restored. Nothing in this Paragraph (C) shall change the

effect of a Permanent Break-in-Service.

(iii) Permanent Break-in-Service After January 1, 1976 Through December 31, 1986

Unless a person has 10 years of Vesting Service or meets the conditions in

Section 4.05(b), he shall suffer a Permanent Break-in-Service if he has

Consecutive One-Year Breaks-in-Service, including at least one after 1975,

that equal or exceed the number of years of Vesting Service with which he

had been credited.



80



(iv) Permanent Break-in-Service After December 31, 1986

A person who has earned five or fewer years of Vesting Service has a

Permanent Break-in-Service if he has at least five consecutive One-Year

Breaks including at least one after 1986. A person who has earned six but

less than ten years of Vesting Service has a Permanent Break-in-Service if

he has a number of consecutive One-Year Breaks that equals or exceeds

the number of years of Vesting Service with which he has been credited.

(v) Permanent Break in Service After December 31, 1998

A person who has earned fewer than five (5) years of Vesting Service has a

Permanent Break-in-Service if he has at least five (5) consecutive One-

Year Breaks including at least one (1) after 1998.



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(vi) Maternity/Paternity Leave

Solely for the purpose of determining whether a One-Year Break-in-

Service has occurred, if a Participant is absent from Covered Employment

by reason of (a) pregnancy, (b) birth of a child to such Participant, (c)

placement of a child with such Participant through adoption or (d)

providing care for such child for a period beginning immediately following

such birth or placement, the number of days that otherwise would normally

have been credited to such Participant but for such absence shall be treated

as Days of Service hereunder to a maximum of 44 Days of Service for

each such pregnancy or placement. The days credited shall be applied to

the year in which such absence begins if doing so will prevent the

Participant from incurring a One-Year Break-in-Service in that year;

otherwise they shall be applied to the immediately following year. The

Plan may require, as a condition of granting such credit, that the Participant

establish in a timely fashion to the satisfaction of the Trustees that the

absence is for one of the reasons specified and the number of days for

which such absence occurred. Days of Service granted pursuant to this

Subsection (vi), shall be used solely for the purpose of avoiding a One-

Break-in-Service and shall not serve to increase a Participant's

Accumulated years of Vesting Service. This subsection shall apply only to

absences that begin on and after December 31, 1986.



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(g) Leave Under the Family and Medical Leave Act

Effective February 5, 1994, periods of absence under the Family and Medical

Leave Act shall be counted as a grace period to the extent required under

Department of Labor Regulation §825.215(d)(4) and will not count toward a

Break-in-Service.

(h) Exceptions on Account of Disability

A Participant shall be allowed a grace period if his absence from Covered

Employment is due to total disability for work as a Licensed Officer. This grace

period is to consist of up to six (6) calendar quarters for which the Participant failed

to earn Pension Credit because of total disability. For purposes of this provision, a

Participant shall be deemed totally disabled only if found to be totally unable, as a

result of bodily injury or disease, to engage in any further employment as a Licensed

Officer, provided further that he does not earn more than $200.00 a month in any

other employment or gainful pursuit whatsoever. The Trustees shall be the sole and

final judges of total disability within the meaning of this Section and of entitlement

to this grace period.

mike

Cross-Out



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(h) Exceptions on Account of Disability (Continued)

In order to receive the benefit of this provision for more than two calendar quarters,

the Participant must make written application therefore to the Trustees. In order to

get credit for a particular quarter as a grace period, the application, if required, must

be filed within one year after that quarter, except if the Trustees find in their sole

discretion that extenuating circumstances prevented the Participant from making

timely application.

(i) Exceptions on Account of Hospitalization

Any period when a Participant is hospitalized shall be deemed a grace period and

therefore not counted toward a Break-in-Service.

(j) Exceptions on Account of Specific Employment

The following period or periods of employment shall be deemed a grace period and

therefore not counted towards a Break-in-Service:

(i) Employment aboard a vessel operated by M.S.C. or any other Governmental

Agency, or

(ii) Employment as a Licensed Pilot in any American Port or the Panama Canal

Zone while remaining available for employment as a member of the

M.M.&P. Pilot Membership Group, or the predecessor M.M.& P. Pilot

Division or any former Pilot local of the Organization, provided, however,

for pensions effective on or after April 1, 2004, such employment as a

Licensed Pilot in any American Port or the Panama Canal Zone shall also be

deemed a grace period if the Participant remained or remains available for

employment as a member of the M.M.&P. Offshore Division, or

(iii) Employment which is covered under an M.M.& P. Pension Plan, or



84


(j) Exceptions on Account of Specific Employment (Continued)

(iv) Employment which generates contributions from the Employer to any

M.M.& P. "Benefit" Plan including, but not limited to, contributions to the

M.M.& P. M.A.T.E.S. Program, the M.M.& P. Joint Employment

Committee, the M.M.& P. Individual Retirement Account Plan, the

M.M.&P. Health & Benefit Plan or the Maritime Institute for Research and

Industrial Development (M.I.R.A.I.D.)

(k) Exception on Account of Shoreside Employment

A Participant shall be allowed a grace period while engaged in shoreside

employment (related directly to the operation of deep-sea vessels) by a company

party to the Agreement and Declaration of Trust; provided, however, the Participant

earns at least 12 quarters (three years) of Pension Credit by actual work at sea in

Covered Employment after the termination of such shoreside employment.

(l) Payment of Pension

If a Participant had obtained a vested interest as provided in Sub-section (b) above,

he shall be entitled to the pension payable at the time of his application for a pension

based on the Pension Credit he has at such time; provided, however, that if such

Participant has failed to average at least 60 days of work per year in Covered

Employment within the period of any three consecutive calendar years after time of

his vesting, he shall only be entitled to the pension payable at the end of such three

consecutive calendar years.



85

Section 4.06 Accumulation of Vesting Service

(a) A Participant shall be entitled to one year of Vesting Service for each calendar year

(including years after attainment of Normal Retirement Age) during the

Contribution Period on which he has 87 or more Days of Service.

For this purpose, a Day of Service shall mean:

(i) A day for which a Participant is directly or indirectly paid, or is entitled to

payment by the Employer for the performance of duties during days of actual

employment, or is paid but does not perform duties, such as vacation days, or

(ii) A day for which back pay, irrespective of mitigation of damages has been

either awarded or agreed to by the Employer. These days shall be credited to

the Participant for the calendar year to which the award or agreement

pertains.

(iii) If a Participant works for a contributing Employer in a job not covered by

this Plan and such work immediately precedes or follows his employment

with the Employer in Covered Employment, his days of employment in such

non covered job during the contribution period and while he continued as an

Employee of the Employer shall be counted as Days of Service toward a

year of Vesting Service.



86

Section 4.06 Accumulation of Vesting Service (Continued)

(b) Exceptions

A Participant shall not be entitled to credit toward a year of Vesting Service for the

following periods:

(i) Years preceding a Permanent Break in Service as defined in Sub-paragraphs

(c) and (d) of Section 4.05 above.

(ii) Years preceding a Permanent Break in Service as defined in Sub-paragraph

(f) of Section 4.05 above.

Section 4.07 Eligibility and Vesting Service After February 28, 2013

Notwithstanding anything herein to the contrary, Covered Employment on or after

March 1, 2013 under the M.M.&P. Adjustable Pension Plan shall be treated as Covered

Employment under this Plan for all purposes other than benefit accruals, including but not

limited to eligibility, vesting, and disability.

M.M.& P. PENSION PLAN THIRD RESTATED REGULATIONS ARTICLE IV-A

AUGMENTED PENSION BENEFIT

87

Section 4.01-A Outline and Purpose

Effective January 1, 1985, an Augmented Pension Bank Account shall be established for

each eligible Participant who has worked in Covered Employment. Each eligible Participant's

Augmented Pension Bank Account shall be credited with Banked Days during 1985 and debited for

Banked Days withdrawn during calendar years 1985 through and including 1987 pursuant to the

following sections of this Article.

The purpose of a Participant's Augmented Pension Bank Account will be to augment in

calendar years 1985 through 1987 (i) the number of Days of Covered Employment an eligible

Participant earns as needed to provide a Participant with full Pension Credit (not Vesting Service)

for that calendar year and (ii) an eligible Participant's "Pay" as defined in Article III, Section 3.03(f)

for purposes of determining the amount of a Participant's pension. In no event, however, shall a

Participant be credited with more than one full Pension Credit under this Plan in any one calendar

year, nor shall a Participant's Pay for pension amount calculation purposes in any one calendar year

exceed the total amount of the Pay the Participant could have earned had he been fully employed for

the entire calendar year.

Section 4.02-A Definitions

(a) Valuation Date. The term "Valuation Date" as used herein shall mean the last day

of each calendar year 1985 through 1987, inclusive.



88

Section 4.02-A Definitions (Continued)

(b) Augmented Pension Bank Account. The term "Augmented Pension Bank

Account" as used herein shall mean the separate account maintained for each

eligible Participant which is credited and debited with Banked Days.

(c) Banked Days. The term "Banked Days" as used herein shall mean days credited to

a Participant's Augmented Pension Bank Account as determined in Section 4.03-

A(c) of this Article.

(d) Pay. The term "Pay" as used herein shall have the same meaning as the definition

contained in Article III, Sections 3.03(f)(ii) and (iii).

Section 4.03-A Valuation

(a) December 31, 1985

As soon as practicable following the end of the 1985 calendar year, each eligible

Participant's Augmented Pension Bank Account shall be updated as of the December

31, 1985 Valuation Date in accordance with this Section 4.03-A by (i) crediting

(depositing) Banked Days earned during 1985 and (ii) debiting (withdrawing)

Banked Days for 1985 to the extent needed and available.



89

Section 4.03-A Valuation (Continued)

(b) December 31, 1986 and 1987

As soon as practicable following the end of calendar years 1986 and 1987, each

eligible Participant's Augmented Pension Bank Account shall be updated as of the

immediately preceding Valuation Date in accordance with this Section 4.03-A by

debiting (withdrawing) Banked Days to the extent needed and available.

(c) Banked Days earned and credited during calendar year 1985 shall be determined by

a fraction; the numerator of which is a Participant's total number of overtime hours

worked during 1985, multiplied by the average hourly rate of overtime pay that was

actually paid for such overtime hours, multiplied by 1.35; the denominator being

total base wages plus non-watch allowance or non-watch equivalent earned by the

Participant during the calendar year divided by the total number of shipboard days of

Covered Employment (excluding vacation) during the calendar year.

Number of Overtime hours Average of Overtime worked during 1985 X pay during 1985 X 1.35 Total base wage plus Total days of non-watch allowance or shipboard employment equivalent



90

Section 4.03-A Valuation (Continued) (c) (Continued)

Banked Days may only be credited by virtue of overtime hours in Covered

Employment during the period January 1, 1985 through December 31, 1985.

Banked Days to be credited by this formula will be rounded to the nearest whole

number.

Each Banked Day shall also have a Pay value for purposes of determining a

Participant’s wage related pension amount. Such Pay value shall be a dollar amount

per Banked Day which will equal the denominator of the fraction described above in

this Section (total base wages plus non-watch allowance or non-watch equivalent

earned by the Participant during 1985 divided by the total number of shipboard days

of Covered Employment, excluding vacation, during 1985).

(d) Banked Days withdrawn as of a Valuation Date shall be determined by subtracting

from 365 (366 in leap years) the number of days the Participant worked in Covered

Employment during the calendar year preceding the Valuation Date. In no event

shall the number of Banked Days withdrawn on any Valuation Date exceed the

number of Banked Days remaining in a Participant's Augmented Pension Bank

Account.

All withdrawn Banked Days shall be similarly used whether a Participant needs the

Days to Augment Pension Credit only, Pay only, or both.



91

Section 4.03-A Valuation (Continued)

(e) A Participant shall be eligible to withdraw Banked Days only in those calendar years

in which he works at least 44 Days of Service as defined in Section 4.06 (at least 2

months of service for non-Maritime Participants).

Section 4.04-A Carryover and Discontinuance

Banked Days earned and credited in the 1985 Plan Year may be withdrawn to augment 1985

days of Covered Employment or carried over, in part or whole, to augment 1986 or 1987 Covered

Employment. Any Banked Days remaining in a Participant's Augmented Pension Bank Account as

of December 31, 1987 after application to augment 1987 Covered Employment, shall be forfeited

and all Augmented Pension Bank Accounts shall be terminated.

M.M.& P. PENSION PLAN THIRD RESTATED REGULATIONS ARTICLE IV-B PENSION CREDIT PURCHASE

92

Section 4.01-B Outline

Effective January 1, 1996, a Qualified Participant in the Pension Plan may elect to purchase

Pension Credits by using amounts that have been rolled over into the Pension Plan from the M.M.&

P. Individual Retirement Account Plan, subject to the terms and limitations provided herein.

Pension Credits purchased under this Article IV-B may be combined with Pension Credits

accumulated under Article IV (based on service in Covered Employment) for purposes of qualifying

for and/or increasing the amount of one or more of the types of pensions described in Article III.

Section 4.02-B Definition of a Qualified Participant

The term "Qualified Participant" as used herein shall mean a Participant who meets all of

the following requirements:

(a) he has credit for at least 10 years of Vesting Service, as defined in Article IV,

Section 4.06;

(b) he has attained the minimum age necessary to qualify for one or more of the types of

pensions described in Article III, which type of pension shall be determined on the

basis of the combination of Pension Credits purchased under this Article IV-B and

Pension Credits accumulated under Article IV based on service in Covered

Employment; and

(c) he has made application for a pension pursuant to Article VI, Section 6.01.


93

Section 4.03-B Limit on Number of Pension Credits that may be Purchased Pension Credits may be purchased only for employment after January 1, 1996 for which an

Employer was obligated to make contributions on behalf of the Qualified Participant to the

M.M.&P. Individual Retirement Account Plan but not to the Pension Plan. The number of Pension

Credits that may be purchased may not exceed the number of Pension Credits that the Qualified

Participant would have earned if the Qualified Participant's employment under the preceding

sentence had been Covered Employment. In no event may a Qualified Participant be credited with

more than one Pension Credit under Article IV and this Article IV-B for any calendar year.

Section 4.04-B Procedure for Purchasing Pension Credit

(a) At the time a Qualified Participant makes an application for a pension pursuant to

Article VI, Section 6.01, such Qualified Participant shall notify the Trustees (in a form

and manner prescribed by the Trustees) of his intention (if any) to purchase Pension

Credits under this Article IV-B. Such notification shall indicate:

(i) the number of Pension Credits that the Qualified Participant would like to

purchase and the type or types of pensions under Article III that the

Qualified Participant is interested in purchasing Pension Credits for, and

(ii) the amount of assets held in the M.M.& P. Individual Retirement Account

Plan that the Qualified Participant intends to use to purchase Pension

Credits.


94

Section 4.04-B Procedure for Purchasing Pension Credit (Continued)

(b) Upon such notification by a Qualified Participant, the Trustees shall direct the

actuary for the Pension Plan to calculate the purchase price for additional Pension

Credits for each of the types of pensions described under Article III that the

Qualified Participant has expressed an interest in and would otherwise be eligible for

(but for an insufficient number of Pension Credits accumulated under Article IV).

The purchase price of any single Pension Credit shall be the difference between the

present value of the Qualified Participant's benefit under a particular type of pension

based on the Participant's total Pension Credits with and without the additional

Pension Credit under this Section 4.04-B. For purposes of this Section 4.04-B,

present value shall be based on the interest rate used to determine Lump-Sum

payments under the Pension Plan and any relevant factors that may be prescribed by

the Internal Revenue Service.


95


(c) Upon completion of these calculations, the Trustees shall notify the Qualified

Participant of the purchase price of each additional Pension Credit for any of the

types of pensions described under Article III for which the Qualified Participant has

expressed an interest, along with the aggregate purchase price for the total number of

Pension Credits that the Qualified Participant has expressed an interest in purchasing

(taking into account any limitations under Section 4.03-B on the number of Pension

Credits that may be purchased by the Qualified Participant, and the amount of assets

that the Qualified Participant intends to use to purchase Pension Credits).

(d) Upon notification from the Trustees of the purchase price of Pension Credits, the

Qualified Participant shall have 30 days to irrevocably elect to purchase additional

Pension Credits, specifying the number of Pension Credits to be purchased (and

designating the type of pension under Article III if more than one type of pension is

available) in a form and manner prescribed by the Trustees. Such election shall also

constitute an election by the Qualified Participant under the M.M.& P. Individual

Retirement Account Plan Regulations to have the amount necessary to purchase the

designated number of Pension Credits paid directly to the Pension Plan as a Direct

Rollover (as that term is defined under the M.M.& P. Individual Retirement Account

Plan). If the Qualified Participant fails to elect to purchase additional Pension

Credits within 30 days after notification from the Trustees of the purchase price of


96


(d) (Continued)

such Pension Credits, the Qualified Participant shall be deemed to have waived his

right to purchase Pension Credits under this Article IV-B, and the type and amount

of his pension shall be based solely on the Pension Credits accumulated under

Article IV.

Section 4.05-B Tables for Estimating Cost of Purchasing Pension Credits The actuary for the Pension Plan shall endeavor to provide the Trustees, on an

annual basis, with tables that permit the Trustees to estimate the cost of purchasing Pension Credits

under this Article IV-B.

Section 4.06-B No Other Rollovers Allowed to Pension Plan

Unless specifically provided otherwise, the Pension Plan shall not accept any

rollovers other than to purchase Pension Credits under the terms and conditions of this Article IV-B.

Section 4.07-B No Applicability to Vesting Service

In no event shall anything in this Article IV-B be construed to allow the purchase or

crediting of Vesting Service under the Pension Plan.

M.M.& P. PENSION PLAN THIRD RESTATED REGULATIONS ARTICLE V PARTICIPANT AND SPOUSE PENSION AND BENEFITS TO SURVIVORS

97

Section 5.01 General

This Article applies only to Participants who have at least one Day of Service (including

paid leave) for an Employer after August 22, 1984, except as provided in subsection 5.06. The

following general provisions are subject to all of the conditions and limitations in this Article:

(a) If a married Participant makes application for a pension after December 31, 1984,

the benefit is to be paid as a 50% Participant and Spouse Pension unless:

(1) the Participant and Spouse elect otherwise in accordance with Section

5.02(e); or

(2) the Spouse is not a Qualified Spouse as defined below; or

(3) the benefit is payable only in a single sum, under Section 5.04(g)(1); or

(4) the provisions of Section 5.02(g) apply.

(b) If a married Participant with a vested right to a pension under the Plan dies after

August 22, 1984 but before his pension payments have started, a Pre-retirement

Surviving Spouse Pension shall be payable as described in this Article.

(c) For purposes of this Plan, a Spouse is a person to whom a Participant is considered

married under applicable law, provided such marriage must be between a man and a

woman; provided further, however, that a Participant’s former Spouse shall be

treated as a Surviving Spouse of the Participant hereunder to the extent provided in a

Qualified Domestic Relations Order (within the meaning of sections 206(d) of the

Act and 414(p) of the Code).”

Notwithstanding anything herein to the contrary, effective June 26, 2013,

for purposes of this Plan, a Spouse shall mean the person to whom a Participant is


98

Section 5.01 General (Continued)

(c) (Continued)

legally married under applicable law; provided, however, that a Participant’s former Spouse

shall be treated as a Surviving Spouse of the Participant hereunder to the extent

provided in a Qualified Domestic Relations Order (within the meaning of sections

206 (d) of the Act and 414 (p) of the Code).

(d) To be eligible to receive the survivor's pension in accordance with a Participant and

Spouse Pension or a Pre-retirement Surviving Spouse Pension, the Spouse must be a

"Qualified Spouse". A Spouse is a Qualified Spouse if the Participant and Spouse

were married on the date of the Participant's death and had been married throughout

the year ending with the date the Participant's pension payments start or, if earlier,

the date of death. A Spouse is also a Qualified Spouse if the Participant and Spouse

became married within the year immediately preceding the date the Participant's

pension payments start and they were married for at least a year before his death.

(e) Notwithstanding any provision to the contrary in paragraph (c) or (d) above, for

purposes of this Article a person to whom a Participant was married on the date his

pension payments started and for at least one year immediately before that, but who

is divorced from the Participant after that date, shall not be considered his Qualified

Spouse on the date of his death (if she is living at that time) unless a Qualified

Domestic Relations Order provides otherwise.


99


(f) The Trustees shall provide to each Participant an explanation of the Pre-retirement

Surviving Spouse Pension within the period beginning with the first day of the

Calendar Year in which the Participant attains age 32 and ending with the close of

the Calendar Year preceding the year in which the Participant attains age 35. Such

explanation shall describe the terms and conditions of the Pre-retirement Surviving

Spouse Pension, the Participant's right to waive such form of payment, the right to

revoke an election, and the right to request additional specific information regarding

the benefit.

(g) The previous Plan provisions for Participant and Spouse Pensions are set forth in

Appendix A. Special provisions for certain Participants with no Days of Service

after August 22, 1984, are set forth in Section 5.06.


100


(h) Upon retirement, notwithstanding any provision of this Plan to the contrary, a

Participant who accrued Pension Credit under the Great Lakes and Rivers District

and Maritime Pension Plan prior to September 1, 1989 may designate an individual

other than a Qualified Spouse to receive the survivor benefits under the 50% or

100% Participant and Spouse Pension or elect the optional form of benefit as set

forth in Appendix B. If the Participant is married to a Qualified Spouse on the date

his pension becomes effective, he and his spouse must waive the 50% Participant

and Spouse Pension otherwise payable in accordance with Section 5.02(e) prior to

designating another beneficiary or electing such optional form of benefit. Any

distribution under this Section shall be adjusted, if necessary, to meet the applicable

requirements of Section 401(a)(9) of the Internal Revenue Code.

Notwithstanding the foregoing, an individual (other than a Qualified Spouse) who is

more than ten years younger than the Participant may not be designated as the

recipient of survivor benefits under a 100% Participant and Spouse Pension.


101

Section 5.02 Participant and Spouse Pension at Retirement

(a) A pension of a Participant who is married to a Qualified Spouse on the date his

pension payments start shall be paid in the form of a 50% Participant and Spouse

Pension, unless the Participant has filed with the Trustees in writing (i) a valid,

timely waiver of that form of pension and (ii) an election of the 100% Participant

and Spouse Pension or, for pensions commencing on or after October 1, 1990, the

50% or 100% "pop-up" options described in subsections (i) and (j) of this Section or,

for pensions commencing on or after January 1, 2009, the 75% Participant and

Spouse Pension or the 75% “pop-up” option described in subsection (k) of this

Section. Any such rejection or election of optional forms shall be subject to all of

the conditions of this Section.

(b) A 50%, 75% or 100% Participant and Spouse Pension means that the Participant

will receive an adjusted monthly amount for life and, if the Participant dies before

his Qualified Spouse, the latter will receive a monthly lifetime benefit of 50%, 75%

or 100% of the Participant's adjusted monthly amount. The Participant's monthly

amount shall be a percentage of the full monthly amount otherwise payable as a

single life pension (after adjustment, if any, for early retirement or Lump-Sum

Payout). Such percentage reduction shall be in accordance with generally accepted

actuarial principles and based on an investment return assumption equal to the

greater of; (a) the PBGC close-out rate for immediate annuities under terminated

single employer plans (previously 29-C.F.R. Part 2619) in effect on January 1,

preceding the retirement effective date, or (b) 8 1/4%, and Group Annuity Table of

1971 mortality rates.


102

Section 5.02 Participant and Spouse Pension at Retirement (Continued)

(c) A Participant and Spouse Pension, once payments have begun, may not be revoked

nor the Pensioner's benefits increased by reason of subsequent divorce or death of

the spouse before that of the Participant except in accordance with a Joint and

Survivor "pop-up" option in effect in accordance with subsections (i) and (j) of

this Section.

(d) A retiring Participant shall be advised by the Trustees of the effect of payment on the

basis of the 50% Participant and Spouse Pension, including a comparison of the full

single life pension amount and of the adjusted amount.

(e) Except as provided in subsection (g) of this Section, the 50% Participant and Spouse

Pension may be waived in favor of another form of distribution only as follows:


103


(e) (Continued)

(1) The Participant files the waiver in writing in such form as the Trustees may

prescribe, and the Participant's Spouse acknowledges the effect of the waiver

and consents to it in writing, witnessed by a notary public, or such

representative of the Plan as the Trustees may designate for that purpose; or

(2) The Participant establishes to the satisfaction of the Trustees that:

(A) he or she is not married; or

(B) the Spouse whose consent would be required cannot be located; or

(C) the Participant and the Spouse are legally separated; or

(D) the Participant has been abandoned by the Spouse as confirmed by

court order.

If the Spouse is legally incompetent, consent under this Section may be

given by his or her legal guardian, including the Participant if authorized to

act as the Spouse's legal guardian.


104


(e) (Continued)

(3) To be timely, the request for a waiver and any required consent must be filed

with the Trustees before the date payments start, except that it may be filed

later if within 180 days of the date the Participant was notified by the

Trustees of the effect of the Participant and Spouse Pension. The Participant

may file a new waiver or revoke a previous waiver at any time during that

180-day period.

Notwithstanding any other provision of the Plan, a waiver of the Participant

and Spouse Pension shall not be effective if given more than 180 days before

the Annuity Starting Date.

(4) A Spouse's consent to a waiver of the Participant and Spouse Pension shall

be effective only with respect to that Spouse, and shall be irrevocable unless

the Participant revokes the waiver to which it relates.

(f) If the 50% Participant and Spouse Pension would be payable except for the fact that the

Spouse is not a Qualified Spouse on the date the Participant's pension payments start

because the Participant and Spouse have not been married for at least a year at that

time, pension payments to the Participant shall be made in the amount adjusted for

the 50% Participant and Spouse Pension and if the Participant and Spouse have not

been married to each other for at least a year before the death of the Participant, the

difference between the amounts that had been paid and the amounts that would have

been paid if the monthly amount had not been adjusted shall be paid to the Spouse, if

then alive, and otherwise to the Participant's beneficiary.


105


(g) A Participant may reject the 50% Participant and Spouse Pension (or revoke a

previous rejection) or elect a 100% Participant and Spouse Pension, or for pensions

commencing on or after October 1, 1990, the 100% "pop-up", or 50% "pop-up"

options described in subsections (i) and (j) of this Section, or for pensions

commencing on or after January 1, 2009, the 75% Participant and Spouse Pension or

the 75% “pop-up” option described in subsection (k) of this Section at any time

before the effective date of his pension, that is, before the first day of the first month

for which a pension is payable to him. Also, any Participant's election of one of the

four optional forms of pension set out in Article IV, Section 8(E) of the previous

Rules of the Plan shall remain effective in accordance with those Rules and

conditions unless rescinded by a revocation or new election by the Participant as

provided in this Section.

(h) If a Pensioner dies leaving no close next of kin, the pension payment for the month

in which he died, if not previously paid to him, shall be paid to his named

beneficiary. If no beneficiary has been named, the Trustees shall direct that such

benefits be paid to any person who is the object of the natural bounty of the

Pensioner or to the estate of the Pensioner.

(i) 50% "Pop-up" Option

The 50% "pop-up" option means that the Participant will receive an adjusted

monthly amount for life and, if the Participant predeceases his Qualified Spouse, the

latter will receive a monthly benefit for his/her lifetime equal to 50% of the

Participant's adjusted monthly amount. In the event, however, that the Qualified


106


(i) (Continued)

Spouse predeceases the Participant, the monthly amount payable to the Participant

shall, effective as of the first of the next calendar

(*See Appendix A) month following the death of such Spouse, be increased to the

amount that would have been payable before any reduction for this option. The

Participant's monthly amount under this option shall be a percentage of the full

monthly amount otherwise payable as a single life pension (after adjustment, if any,

for early retirement or Lump-Sum payout). Such percentage reduction shall be in

accordance with generally accepted actuarial principles and based on an investment

return assumption equal to the greater of: (a) the PBGC close-out rate for immediate

annuities under terminated single employer plans (previously 29-C.F.R. Part 2619)

in effect on January 1, preceding the retirement effective date, or (b) 8 1/4%, and

Group Annuity Table of 1971 mortality rates.

(j) 100% "Pop-up" Option

The 100% "pop-up" option means that the Participant will receive an adjusted

monthly amount for life and, if the Participant predeceases his Qualified Spouse, the

latter will receive a monthly benefit for his/her lifetime equal to 100% of the

Participant's adjusted monthly amount.


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(j) (Continued)

In the event, however, that the Qualified Spouse predeceases the Participant, the

monthly amount payable to the Participant shall, effective as of the first of the next

calendar month following the death of such Spouse, be increased to the amount that

would have been payable before any reduction for this option. The Participant's

monthly amount under this option shall be a percentage of the full monthly amount

otherwise payable as a single life pension after adjustment, if any, for early retirement

or Lump-Sum Payout. Such percentage reduction shall be in accordance with

generally accepted actuarial principles and based on an investment return assumption

equal to the greater of: (a) the PBGC close-out rate for immediate annuities under

terminated single employer plans (previously 29-C.F.R. Part 2619) in effect on

January 1, preceding the retirement effective date, or (b) 8-1/4%, and Group Annuity

Table of 1971 mortality rates.

(k) 75% “Pop-up” Option

The 75% “pop-up” option means that the Participant will receive an adjusted monthly

amount for life and, if the Participant predeceases his Qualified Spouse, the latter will

receive a lifetime monthly benefit equal to 75% of the Participant’s adjusted monthly

amount. In the event, however, that the Qualified Spouse predeceases the Participant,

the monthly amount payable to the Participant shall, effective as of the first of the next

calendar month following the death of such Spouse, be increased to the amount that

would have been payable before any reduction for this option. The adjusted monthly


108


amount of a Participant who elects this option shall be determined on the same basis

as adjustments under subsections (i) and (j) of this Section.

Section 5.03 60-Month Guarantee

(a) Post Retirement

If a Pensioner dies before 60 monthly pension payments have been paid and a

Participant and Spouse or other optional Pension is not effective, payment of the

monthly pension amount shall continue to be made up to a maximum of 60

payments, including those payments made before the death of the Pensioner. These

payments shall be paid to the Pensioner's named beneficiary only if the named

beneficiary is included in one of the following classes:

(i) Spouse

(ii) Children/Child

(iii) Parent(s)

provided the above individual(s) meet the definition of "Dependent" under Article I

Definitions of the M.M.& P. Health & Benefit Plan Rules and Regulations.

If the named beneficiary in a class described above dies before the aggregate 60

monthly pension payments have been paid, or if the Pensioner died without naming

a beneficiary, or if the Pensioner named a beneficiary not included above, payment

of the monthly pension amount shall be made up to a maximum of 60 payments

(including all prior monthly payments) to the person or persons listed above in the

order named and in equal shares where necessary.


109

Section 5.03 60-Month Guarantee (Continued)

(b) Pre-retirement

If a Participant dies at a time when he would have been fully eligible to begin

receiving payment of a Regular, Reduced, Early Retirement, Disability, Deferred

Ten Year or Deferred Vesting Pension, but prior to the filing or the approval of his

pension application, monthly pension payments up to a maximum of 60 monthly

payments shall be paid to the person or persons and under the same conditions

contained in subsection (a) above. However, no benefits under this subsection shall

be payable:

(i) unless the total of the 60 monthly payments shall be in excess of total

payment under the Death and Accidental Death provision of the M.M.& P.

Health & Benefit Plan, or

(ii) if a Participant and Spouse or Joint and Survivor Pension is payable to the

surviving spouse.

The Trustees shall have the sole discretion to determine from records submitted

whether or not the Participant would have been fully entitled to a Disability Pension.

Similarly, in the case of a Participant who dies prior to the filing or approval of his

pension, the Trustees shall have the sole discretion to determine whether or not the

Participant was fully eligible for a pension.

(c) Lump-Sum Option

In the event the monthly payments described in subsection (b) above are payable to a

Spouse, she may accept a lump sum, in place thereof, on the following conditions:


110


(c) Lump-Sum Option (Continued)

(i) The lump-sum shall be the Actuarial Present Value of the sum then payable

at the effective date of the option.

(ii) The option to accept a lump-sum payment may be exercised only between

six and ten months after the death of the Participant.

(d) Notwithstanding any provision of this Plan to the contrary, if a Participant who

accrued Pension Credit under the Great Lakes and Rivers District and Maritime

Pension Plan prior to September 1, 1989 dies prior to the effective date of his

pension, his designated beneficiary shall, upon application, be entitled to receive

60-monthly payments in an amount equal to 50% of the monthly pension which

the deceased Participant would have received had he retired at Normal Retirement

Age and based solely on the Pension Credits earned under the Great Lakes Plan,

provided he meets all the following requirements:

(i) he was not married, or had been married for less than one year on his date of

death; and

(ii) he had earned at least 15 years of Pension Credit, including at least 3 years of

Pension Credit for which contributions were required to be made to this Plan

or the Great Lakes Plan, without a Permanent Break in Service.


111


(d) (Continued)

The total value of any pension payments, if any, received by the deceased

Participant during a previous period of retirement, if any, shall be deducted from the

total value of the 60- monthly payments otherwise due the beneficiary. The monthly

payments described herein will begin with the first month following the death of the

Participant.

A Participant may designate a beneficiary to receive any benefits payable under this

subsection (d) by filing such designation with the Trustees on a form prescribed by

the Trustees. A Participant shall have the right to change his designation of

beneficiary without the consent of the beneficiary, but no such change shall be

effective or binding on the Board unless it is received by the Board prior to the time

any payment is made to the beneficiary whose designation is on file with the

Trustees.

If no beneficiary is designated by a Participant, or if a designated beneficiary

predeceases the Participant or survives him but dies prior to receipt of any benefits

under this subsection, the benefits due and payable shall be made to the following in

the order named: (1) the Participant's surviving spouse, (2) the Participant's children

or grandchildren, (3) the Participant's parent(s), (4) the Participant's brothers and

sisters, or (5) the Participant's estate.

Any such payment shall to the extent thereof be a complete discharge of all liability

under the Plan with respect thereto.


112

Section 5.04 Pre-retirement Surviving Spouse Pension - Before Age 55

(a) If a Participant who has a Qualified Spouse dies prior to attaining age 55 and before

his pension payments start but at a time when he has earned a vested right to a

pension, a 50% Pre-retirement Surviving Spouse Pension shall be paid to his

surviving Spouse unless rejected pursuant to subparagraphs (e) or (f) of this section

for another form of payment.

(b) A Spouse is a Qualified Spouse for the purpose of this subsection if the Participant

and Spouse have been married to each other throughout the year immediately before

his death, or if the couple were divorced after being married for at least one year and

the former spouse is required to be treated as a Spouse or Surviving Spouse under a

Qualified Domestic Relations Order.

(c) If the Participant described in (a) above died at a time when he had at least 20 years

of Pension Credit, the surviving Qualified Spouse shall be entitled to a lifetime

Surviving Spouse Pension determined in accordance with the provisions of Section

5.02 as if the Participant had retired with a Regular Pension the day before he died.


113

Section 5.04 Pre-retirement Surviving Spouse Pension – Before Age 55 (Continued) (d) If the Participant described in (a) above died before he would have been eligible to

begin receiving pension payments had he retired (other than a Disability Pension if

he died before its Effective Date), the surviving Qualified Spouse shall be entitled to

a 50% Pre-retirement Surviving Spouse Pension determined as if the Participant had

separated from service under the Plan on the earlier of the date he last worked in

Covered Employment or the date of his death, had survived to the earliest age at

which a pension (other than Disability Pension) would be payable to him under the

Plan, retired at that age with an immediate 50% Participant and Spouse Pension, and

died the next day.

In other words, the 50% Pre-retirement Surviving Spouse Pension begins when the

Participant would have attained the earliest retirement age for which he would have

qualified and the amount is 50% of what the Participant's pension amount would

have been, after adjustment, if any, for the early retirement and for the 50%

Participant and Spouse Pension form. The amount shall be determined under the

terms of the Plan in effect when the Participant last worked in Covered Employment

unless otherwise expressly specified.


114

Section 5.04 Pre-retirement Surviving Spouse Pension – Before Age 55 (Continued)

(d) (Continued)

Notwithstanding the above, the Surviving Spouse may elect, in writing filed with the

Trustees on whatever form they may prescribe, to defer the commencement of the

Pre-Retirement Surviving Spouse Pension to a later date but no later than the date

the Participant would have reached Normal Retirement Age. If for some reason

payments have not already begun as prescribed in this subsection, payment of the

Pre-Retirement Surviving Spouse Benefit must start no later than December 1 of the

calendar year in which the Participant would have reached age 70-1/2 or if later,

December 1, of the calendar year following the year of the Participant's death. If the

Trustees confirm the identity and whereabouts of a Surviving Spouse who has not

applied for benefits by that time, payments to that Surviving Spouse in the form of a

single-life annuity (subject to the provisions of Section 5.04(g)(1) of this Article on

small benefit cash-outs) will begin automatically as of that date. If the Annuity

Starting Date for the Pre-Retirement Surviving Spouse Benefit is deferred to after

the Participant's earliest retirement date pursuant to the above paragraph, the benefit

shall be determined as if the Participant had died on the Surviving Spouse's Annuity

Starting Date after retiring with a Participant and Spouse Pension the day before,

taking into account any actuarial adjustments to the Participant's accrued benefit that

would have applied as of that date.


115

Section 5.04 Pre-retirement Surviving Spouse Pension – Before Age 55 (Continued) (e) An under age 55 Participant may reject the 50% Pre-retirement Surviving Spouse

Pension coverage and elect instead the 100% Pre-retirement Surviving Spouse

Pension to be effective in the event of the Participant's death at a time when he was

eligible for a Regular or Disability Pension under this Plan but before the attainment

of age 55.

(i) The Trustees shall have the sole discretion to determine from the records

submitted whether or not the said Participant would have been fully entitled

to a Disability Pension.

(ii) For purposes of this survivor's benefit only, a Participant who dies prior to

the age of 55, and meets all the other requirements for a Disability Pension

under this Plan, shall not be deemed to have been eligible to retire on a

Disability Pension unless he had been Permanently and Totally Disabled for

at least the 150 days prior to his date of death.


116

Section 5.04 Pre-retirement Surviving Spouse Pension – Before Age 55 (Continued) (e) (Continued) (iii) A Participant may make this choice (or revocation of a previous choice) by

written election provided the Spouse has properly consented in writing to

such written election pursuant to the terms of this Article V. The written

election may be filed with the Trustees at any time, but this choice is not to

be effective until 24 months after it is filed with the Trustees, except if the

Participant dies as the result of an accident occurring after his election and

application of the 24-month period of ineffectiveness would deny the

pension to his Spouse.

(iv) If, in accordance with this subsection, the Spouse was protected for any part

of a calendar year prior to the Participant's 55th birth date, in the sense that a

pension would have been payable to the Spouse if the Participant had died in

that year, there shall be a charge against the future pension otherwise payable

to the Participant or the Spouse. The charge shall be a reduction for each of

such calendar years of eligibility of 1 cent for each $10 of monthly benefits

to which the Participant would otherwise be entitled. This reduction shall be

made before any adjustment for any Participant and Spouse Pension.


117


(e) (Continued)

(v) The benefit amount for the surviving Spouse shall be determined as if the

Participant had retired on the day before he died.

(f) An under age 55 Participant may reject the 50% Pre-retirement Surviving Spouse

Pension coverage and elect instead the 60-Month Guarantee, as provided for in

Section 5.03(b), to be payable in the event of the Participant's death. Such rejection

and election shall be valid only if the Participant files in writing in such form as the

Trustees may prescribe, and the Participant's Spouse acknowledges the effect of the

alternate benefit form, and specific Beneficiary (if applicable), and consents to it in

writing, witnessed by a notary public.

(g) Notwithstanding any other provision of this Article, a Pre-retirement Surviving

Spouse Pension shall not be paid in the form, manner or amount described above if

one of the alternatives set forth in this subsection applies.

(i) If the Actuarial Present Value of the benefit is not more than $1,000 ($5,000

for distributions made on or after January 1, 2000 and prior to March 28,

2005), the Trustees shall make a single-sum payment to the Spouse in an

amount equal to that Actuarial Present Value, in full discharge of the Pre-

retirement Surviving Spouse Pension. The cash out look-back rule in

Treasury Regulations § 1.417(e)-1(b) prior to amendment by GUST shall

remain in effect for distributions occurring prior to October 17, 2000.


118


(g) (Continued)

(ii) The Spouse may elect in writing, filed with the Trustees, and on whatever

form they may prescribe, to defer commencement of the Pre-retirement

Surviving Spouse Pension until a specified date that is no later than the first

of the month on or immediately before the date on which the Participant

would have reached age 70-1/2. The amount payable at that time shall be

determined as described in paragraphs (c) and (d) of this Section, except that

the benefit shall be paid in accordance with the terms of the Plan in effect

when the Participant last worked in Covered Employment (unless otherwise

specified) as if the Participant had retired with a Participant and Spouse

Pension on the day before the Surviving Spouse's payments are scheduled to

start, and died the next day.

Section 5.05 Pre-retirement Surviving Spouse Pension - After Age 55

(a) If a Participant who has a Qualified Spouse (as defined in Section 5.04(b)) and has

attained age 55 dies before his pension payments start, but at a time when he had

earned a vested right to a pension, a Pre-retirement Surviving Spouse Pension shall

be paid to his surviving Spouse, unless rejected pursuant to subparagraph (d) of this

section for another form of payment.


119

Section 5.05 Pre-retirement Surviving Spouse Pension – After Age 55 (Continued)

(b) If the Participant described in (a) above dies at a time when he would have been

eligible to begin receiving payment of a pension had he retired, the surviving

Qualified Spouse shall be entitled to a lifetime Surviving Spouse Pension

determined in accordance with the provisions of Section 5.02 as if the Participant

had retired with a 100% Participant and Spouse Pension the day before he died. If

the Participant had at least 20 years of Pension Credit, the Surviving Spouse Pension

shall be determined as if the Participant had been eligible for a Regular Pension,

whether or not the conditions of Section 3.02(a) were satisfied.

(c) If the Participant described in (a) above died before he would have been eligible to

begin receiving pension payments had he retired, the surviving Qualified Spouse

shall be entitled to a 50% Pre-retirement Surviving Spouse Pension determined as if

the Participant had separated from service under the Plan on the earlier of the date he

last worked in Covered Employment or the date of his death, had survived to the

earliest age at which a pension (other than a Disability Pension) would be payable to

him under the Plan, retired at that age with an immediate 50% Participant and

Spouse Pension, and died the next day. In other words, the 50% Pre-retirement

Surviving Spouse Pension begins when the Participant would have attained the

earliest retirement age for which he would have qualified and the amount is 50% of

what the Participant's pension amount would have been, after adjustment, if any, for

the early retirement and for the 50% Participant and Spouse Pension form.


120


(c) (Continued)

The amount shall be determined under the terms of the Plan in effect when the

Participant last worked in Covered Employment, unless otherwise expressly

specified.

Notwithstanding the above, the Surviving Spouse may elect, in writing filed with the

Trustees on whatever form they may prescribe, to defer the commencement of the

Pre-Retirement Surviving Spouse Pension to a later date but no later than the date

the Participant would have reached Normal Retirement Age. If for some reason

payments have not already begun as prescribed in this subsection, payment of the

Pre-Retirement Surviving Spouse Benefit must start no later than December 1 of the

calendar year in which the Participant would have reached age 70-1/2 or if later,

December 1, of the calendar year following the year of the Participant's death. If the

Trustees confirm the identity and whereabouts of a Surviving Spouse who has not

applied for benefits by that time, payments to that Surviving Spouse in the form of a

single-life annuity (subject to the provisions of Section 5.04(g)(1) of this Article on

small benefit cash-outs) will begin automatically as of that date.


121


(c) (Continued)

If the Annuity Starting Date for the Pre-Retirement Surviving Spouse Benefit is

deferred to after the Participant's earliest retirement date pursuant to the above

paragraph, the benefit shall be determined as if the Participant had died on the

Surviving Spouse's Annuity Starting Date after retiring with a Participant and

Spouse Pension the day before, taking into account any actuarial adjustments to the

Participant's accrued benefit that would have applied as of that date.

(d) An age 55 or older Participant may reject the 100% or 50% Pre-retirement Surviving

Spouse Pension coverage and elect instead the 60-Month Guarantee, as provided for

in Section 5.03(b), to be payable in the event of the Employee's death. Such rejection

and election shall be valid only if the Participant files in writing in such form as the

Trustees may prescribe, and the Participant's Spouse acknowledges the effect of the

waiver and consents to it in writing, witnessed by a notary public or such

representative of the Plan as the Trustees may designate for that purpose.

(e) Notwithstanding any other provision of this Article, a Pre-retirement Surviving

Spouse Pension shall not be paid in the form, manner or amount described above if

one of the alternatives set forth in Section 5.03(f) applies.


122

Section 5.06 Inactive Vested Participants

(a) A Participant who (1) had at least one Day of Service under the Plan after September

1, 1974, (2) is vested, (3) had not retired under the Plan before August 23, 1984, and

(4) is not otherwise entitled to, or eligible to elect, protection for a surviving Spouse

through a "qualified joint and survivor annuity" within the meaning of Section 205

of the Act, either before or after enactment of the Retirement Equity Act, shall be

entitled to elect to receive his benefit as Participant and Spouse Pension in

accordance with the provisions of this Plan (Appendix A) in effect before the

effective date of this Article, by written request filed with the Trustees before the

Effective Date of his Pension.

(b) A Participant who (1) had at least one Day of Service for an Employer during 1976,

(2) has a vested right to a pension and at least ten years of Vesting Service, (3) was

not receiving pension payments under the Plan as of August 23, 1984, and (4) is not

otherwise entitled to, or eligible to elect, protection for a surviving Spouse through a

"qualified joint and survivor annuity" under this Article as amended on account of

the Retirement Equity Act of 1984, shall be entitled to elect coverage for the Pre-

retirement Surviving Spouse Pension under Section 5.04 or 5.05 by written request

filed with the Trustees before his death or, if earlier, the date his pension payments

start.


123

Section 5.06 Inactive Vested Participants (Continued)

(c) The benefit schedule applied under this subsection shall be that in effect as of the

beginning of the Plan Year immediately after the Participant last completed a year of

Vesting Service, unless otherwise expressly specified.

Section 5.07 Relation to Qualified Domestic Relations Order

Any rights of a former Spouse or other alternate payee under a Qualified Domestic

Relations Order, with respect to a Participant's pension, shall take precedence over those of any later

Spouse of the Participant under this Article.

Section 5.08 Trustees' Reliance

The Trustees shall be entitled to rely on written representations, consents, and revocations

submitted by Participants, Spouses or other parties in making determinations under this Article and,

unless such reliance is arbitrary or capricious, the Trustees' determinations shall be final and

binding, and shall discharge the Fund and the Trustees from liability to the extent of the payments

made. If such representation later proves to be false, the Trustees shall adjust for any excess

benefits paid as a result of the misrepresentation.


124

Section 5.09 Death Benefit

Effective 3/1/91, upon receipt of due notice of the death of a Pensioner, who was eligible for

benefits under the Co-Pay Program of the M.M.& P. Health and Benefit Plan at the time of death or

who was a Pensioner on the pension rolls prior to August 1, 1987, and eligible for benefits under the

M.M.& P. Health and Benefit Plan, the Trustees shall pay the following benefit to the designated

Beneficiary:

Pensioners under age 55 at time of death - $ 1,000

Pensioners age 55 through 59 at time of death - $10,000

Pensioners age 60 through 64 at time of death - $ 5,000

Pensioners age 65 or over at time of death - $ 1,500

The Pensioner, upon the death of his Spouse, may elect to then receive $500, and,

thereupon, the amount payable upon his death shall be reduced accordingly.

Section 5.10 Beneficiaries Each Pensioner shall have the right to designate a Beneficiary or Beneficiaries to receive

benefits under Sections 5.09 payable by reason of his death, but such designation shall not be valid

unless it is in writing, on forms supplied for that purpose by the Trustees or satisfactory to the

Trustees, and is on file at the Plan Office. The Beneficiary or Beneficiaries so designated shall be

known as the Beneficiary or Beneficiaries of record and shall remain in effect unless and until such

designation is effectively revoked or changed.


125

Section 5.10 Beneficiaries (Continued)

(a) In the event of an effective revocation which is not accompanied or followed by a

new valid designation of Beneficiary, such benefits shall be payable, as set forth

below, as though no Beneficiary had been designated.

(b) In the event of a valid change of Beneficiary or Beneficiaries of record, the new

Beneficiary or Beneficiaries shall be considered the Beneficiary or Beneficiaries of

record as though initially designated, and such designation shall continue until

validly revoked or changed.

(c) Such written notice of revocation or change or by designation of a new Beneficiary

shall not be deemed valid or operative unless it is received at the Plan Office prior to

the earliest date that any payment is made by the Trustees of all or any portion of the

benefits payable with respect to said Pensioner. Upon the receipt of such valid and

operative written notice at the Plan Office, the revocation or change shall relate back

to take effect as of the date the Pensioner signed said written notice of revocation or

change, whether or not the Pensioner is living at the time of receipt of said notice.

(d) If more than one Beneficiary is validly designated and in such designation the

Pensioner has failed to specify their respective interests, the Beneficiaries shall share

equally. In the event that any Beneficiary of record does not survive the Pensioner,

the interest of such Beneficiary shall terminate and his share shall be payable equally

to such of the Beneficiaries as survive the Pensioner unless the Pensioner has made

written request to the contrary.


126

Section 5.10 Beneficiaries (Continued)

(e) The amount of any benefit for which there is no Beneficiary at the death of the

Pensioner because no Beneficiary of record survives or no Beneficiary shall have

been designated, shall be paid to the executors or administrators of the deceased,

except that the Trustees may, in their sole discretion, pay the entire amount of such

benefits to the spouse if then living or if there is no spouse then alive, to any other

person who is an object of the natural bounty of the Pensioner.

(f) If any Beneficiary of record is a minor or is otherwise incapable of giving a valid

release for any payment due, the Trustees may, at their discretion and until claim is

made by the duly-appointed guardian or custodian of such Beneficiary, make

payment of the amount of the benefit to such Beneficiary, at a rate not exceeding

$200.00 per month, to any relative by blood or connection by marriage of such

Beneficiary, or to any other person or institution appearing to them to have assumed

custody and principal support of such Beneficiary. Such payment shall constitute a

full discharge of obligations of the Trustees to the extent thereof.

(g) A Beneficiary hereunder shall not include any of the Trustees of the Plan or any

employee thereof, or the Organization or any of its subordinate bodies or any

Officer, or Employee thereof, or any Employer.


127

Section 5.11 Facility of Payment

The Trustees may, in their sole discretion, deduct from the sum payable under Section 5.09

at the time of the death of a Pensioner, an amount not exceeding the amount of the Death Benefit

payable to be paid to any person or persons, other than the Trustees of the M.M.& P. Plans,

appearing to the Trustees to be equitably entitled to the payment by reason of having incurred

expenses on behalf of the Pensioner for his burial. The liability of the Trustees shall thereby be

completely discharged to the extent of the amount so paid.

M.M.& P. PENSION PLAN THIRD RESTATED REGULATIONS ARTICLE VI

APPLICATIONS, BENEFIT PAYMENTS AND RETIREMENT

128

Section 6.01 Advance Written Applications Required

Application for pensions in a form and manner prescribed by the Trustees shall be made in

writing at least one full calendar month in advance of the first month for which benefits are payable,

provided, however, effective September 1, 1998, such pension applications shall be made in writing

in advance of the first month for which benefits are payable. A pension benefit will not be payable

until the Participant has completely withdrawn from any further employment aboard any vessel

whatsoever and in addition, he will not be considered retired until his Accumulated Vacation period

(including any unpaid lag time to the extent applicable) elapses and his return-to-work date is

reached. A Participant, who is an Employee of the Organization prior to retirement, will not be

considered retired until his accrued vacation period elapses.

Section 6.02 Information Required

(a) Each and every Participant and Pensioner shall furnish to the Trustees any

information or proof requested by them and reasonably required to administer these

Regulations. Failure on the part of any Participant or Pensioner to comply with such

request promptly and in good faith shall be sufficient grounds for delaying the

commencement of benefit payments until such time as all such information required

is received. If a Participant or Pensioner makes a false statement material to his

claim for benefits, he may be denied any or all benefits, and the Trustees shall have

the right to recover any payments made in reliance on such false statement.



129

Section 6.02 Information Required (Continued)

(b) Upon the receipt of an application for benefits, the Trustees will provide to the

applicant a general description of the material features of, and an explanation of the

relative values of, the optional forms of benefit available under the Plan in a manner

that satisfies the requirements of section 417(a)(3) of the Internal Revenue Code and

section 1.417(a)(3)-1 of the Treasury Regulations.

Section 6.03 Standard of Proof

The Trustees shall be the sole judges of the standard of proof required in any case. In the

application and interpretation of these Regulations, the decision of the Trustees shall be final and

binding on all parties including Participants, Employers, Organization and Pensioners. The Trustees

may adopt procedures for the determination of Pension Credits in advance of the filing of pension

applications, and may make such determination conclusive.

Section 6.04 Notice of Denial and Right of Appeal for Non-Disability Pensions

(a) A Participant or beneficiary whose application or claim for benefits under

the Plan has been denied, in whole or in part, shall be provided with

adequate notice in writing thereof by the Administrator. Such notice shall

include the reasons for denial and references, when appropriate, to specific

Plan provisions on which the denial is based; a description of any

additional material or information necessary to perfect the claim, if

applicable, and an explanation of why such material or information is

necessary; appropriate information concerning the steps to be taken to

submit the claim for review (including applicable time limits) pursuant to



130

Section 6.04 Notice of Denial and Right of Appeal for Non-Disability Pensions (Continued)

(a) (Continued)

the review procedure set forth in this section; and a statement of a

claimant’s right to bring a civil action under Section 502(a) of ERISA

following a denial on review. Such notice shall be provided to the

Participant or beneficiary no later than ninety (90) days after the

Administrator’s receipt of his claim or application for benefits, unless

special circumstances require an extension of time for processing the

claim or application. If such special circumstances exist, written notice of

the extension shall be furnished to the Participant or beneficiary prior to

the termination of the initial ninety (90) day period, which notice shall

indicate the circumstances requiring an extension as well as the date by

which the Administrator expects to render a decision. In no case shall an

extension of time exceed a period of ninety (90) days from the end of the

initial period.

(b) A Participant or beneficiary (or a duly authorized representative thereof)

may seek review of any such decision by the Administrator denying his

application or claim for benefits, in whole or in part. In order to do so, the

claimant (or his duly authorized representative) must file a written appeal

requesting such a review to the Trustees or the Administrator within sixty

(60) days after his receipt of the written notice denying his application or

claim for benefits in whole or in part. Such written appeal must be



131

Section 6.04 Notice of Denial and Right of Appeal for Non-Disability Pensions (Continued) (b) (Continued)

addressed to the Trustees and must state the claimant's name, address, the

fact that he is appealing the initial decision (giving the date of the decision

appealed from), and the basis of his appeal. If a claimant (or his duly

authorized representative) files such an appeal, or if he makes such a

request before the appeals period expires, the Trustees and Administrator

shall provide him with an opportunity to review pertinent documents at the

Plan Office. In addition, a claimant (or his duly authorized representative)

may submit written comments, documents, records or other information

relating to the claim. The Trustees or their designated Committee will

conduct a review that takes into account all comments, documents, records

and other information submitted by the claimant (or his duly authorized

representative) without regard to whether such information was submitted

by the claimant (or his duly authorized representative) in the initial benefit

determination.

(c) Unless special circumstances require an extension of time, the Trustees or

their designated Committee shall render a final decision on any written

appeal by the date of their next regularly scheduled meeting following

receipt of the written appeal or, in cases where the written appeal is

received within thirty (30) days of the date of such meeting, by the date of



132

Section 6.04 Notice of Denial and Right of Appeal for Non-Disability Pensions (Continued)

(c) (Continued)

their second regularly scheduled meeting following receipt of the written

appeal. If special circumstances require an extension of time, the Trustees

or their designated Committee shall provide the claimant with written

notice of the extension prior to the commencement of the extension. Such

notice shall describe the special circumstances and the date as of which the

benefit determination will be made. Notification of the determination will

be made to the claimant as soon as possible, but not later than five (5) days

after the benefit determination is made. In no case will the period for

rendering a decision be extended beyond the date of the third regularly

scheduled meeting of the Trustees or their designated Committee

following receipt of the written appeal.

(d) The decision of the Trustees or their designated Committee on such

written appeal shall be written in clear and understandable language and

shall include specific reasons for the decision as well as specific

references to the pertinent Plan provisions on which the decision is based,

a statement that the claimant is entitled to receive, upon request and free of

charge, reasonable access to, and copies of, all documents, records and

other information relevant to the claims, a statement of a claimant’s right

to bring a civil action under Section 502(a) of ERISA and a description of

any voluntary appeals procedures offered by the Plan. Such written



133

Section 6.04 Notice of Denial and Right of Appeal for Non-Disability Pensions Pensions (Continued) (d) (Continued)

decision shall be furnished to the claimant within the time frames for

rendering a decision specified above.

Section 6.05 Notice of Denial and Right of Appeal for Disability Pensions

(a) If a claim is for a Disability Pension, then the Administrator will notify the

claimant within a reasonable period of time, not later than forty-five (45)

days after receipt of the claim by the Administrator. If the Administrator

decides that special circumstances require an extension of time for

processing the Disability Pension claim, the Administrator will provide the

claimant with written notice of the extension, before the end of the initial

forty-five day (45-day) period, explaining the reason for the extension and

the date the Administrator expects to make a decision. This extension will

not exceed thirty (30) days, unless the Administrator determines that the

decision cannot be made within the extension period. The Administrator

may then begin a second thirty-day (30-day) extension, as long as the

Administrator provides the claimant with written notice, by the end of the

first thirty-day (30-day) extension, of the reason(s) for the second

extension and the date it expects to render a decision. Both notices for

extension will include: (1) the standards on which entitlement to a

Disability Pension is based; (2) any unresolved issues that prevent a

decision on the claim; and (3) the additional information needed to resolve



134

Section 6.05 Notice of Denial and Right of Appeal for Disability

Pensions (Continued)

(a) (Continued)

the issues. The claimant will have forty-five (45) days to provide any

specific information needed by the Administrator.

(b) If the claim for a Disability Pension is denied, the following additional

information (other than the information listed in Section 6.04) will be

provided in the notice to the claimant denying the claim: (1) a copy of any

rule, guideline or criterion that was relied upon in making the adverse

determination, or a statement that such is available, free of charge, to the

claimant upon request; or (2) an explanation of the medical judgment for

the determination, if the adverse determination is based on medical

necessity, experimental treatment or another limitation or a statement that

such is available free of charge to the claimant upon request.

(c) In the case of an appeal of a claim for a Disability Pension, the claimant

has at least one-hundred eighty (180) days following notification of the

adverse determination in which to appeal to the Trustees or a claims

review committee appointed by the Trustees. The subsequent review will

not be based on the initial determination and will be conducted by a

fiduciary who was not involved in, nor the subordinate of a fiduciary

involved in, the initial determination. The Trustees or a claims review

committee shall consult with an experienced health care professional

regarding the appeal of a determination that was based upon a medical



135

Section 6.05 Notice of Denial and Right of Appeal for Disability Pensions (Continued) (c) (Continued)

judgment. The health care professional must then be identified, whether

or not the advice given was relied upon in the benefit determination, and

must not be an individual who was consulted for, or the subordinate of an

individual consulted for, the original adverse benefit determination.

(d) In the case of an appeal of a claim for a Disability Pension, the

determination upon review will be provided to the claimant no later than

the date of the meeting of the Trustees or any appointed committee that

immediately follows the receipt of a request for review, unless the request

is filed within thirty (30) days preceding the date of such meeting, in

which case a decision will be rendered by the date of the second regularly

scheduled meeting following receipt of the written appeal. If special

circumstances require an extension of time, the claims review committee

will provide the claimant with written notice of the extension prior to the

commencement of the extension. Such notice shall describe the special

circumstances and the date as of which the benefit determination will be

made. Notification of the determination will be made to the claimant as

soon as possible, but not later than five (5) days after the benefit

determination is made. In no case will the period for rendering a decision

be extended beyond the date of the third regularly scheduled meeting of

the claim review committee following receipt of the written appeal.



136

Section 6.05 Notice of Denial and Right of Appeal for Disability Pensions (Continued)

(e) If the claim for a Disability Pension is denied on appeal, the following

additional information (other than the information identified in Section

6.04) will be included in the notice to the claimant denying the claim:

(1) a copy of any rule, guideline or criterion that was relied upon in

making the determination, or a statement that such is available free of

charge to the claimant upon request; (2) an explanation of the medical

judgment for the determination if the adverse determination is based on

medical necessity, experimental treatment or another limitation or a

statement that such is available free of charge to the claimant upon

request; and (3) the following statement: “You and your plan may have

other voluntary alternative dispute resolution options, such as mediation.

One way to find out what may be available is to contact your local U.S.

Department of Labor Office and your State insurance regulatory agency.”



137

Section 6.06 Benefit Payments Generally

(a) An eligible Participant who makes application in accordance with these Regulations,

shall be entitled upon retirement to receive the specified monthly benefit subject to

all of the provisions of these Regulations. Benefits shall be payable commencing

with the first full month when the Participant has fulfilled all of the conditions for

entitlement to benefits and ending with the payment for the month in which the

death of the Pensioner occurs, or in the case of a Disability Pension, so long as the

Total and Permanent Disability continues. Benefits may continue, however, except

as provided for in Article V.

(b) A Participant who makes application for a pension shall be required (1) to execute

an appropriate form authorizing the Trustees to obtain his sea-service records from

the U.S. Coast Guard or any other source; and (2) to provide such other documents

and information and to execute such other forms as prescribed by the Trustees.

(c) Notwithstanding anything herein to the contrary and in addition to the other

requirements described herein, in order to ensure the proper payment of benefits

hereunder and thereby provide adequate protection to the Fund, the Trustees may

require Pensioners and Beneficiaries to certify on a periodic basis, including

annually, the receipt of benefit payments on such forms and in such manner as

prescribed by the Trustees. If a Pensioner or Beneficiary fails to return the executed

certification to the Plan Office within the time frame prescribed by the Trustees, the

Plan Office may temporarily withhold the payment of benefits until such

certification is received by the Plan Office. Upon receipt of such certification, the



138

Section 6.06 Benefit Payments Generally (Continued)

(c) Plan Office will pay to the Pensioner or Beneficiary any benefit payments

temporarily withheld.

Section 6.07 Commencement of Benefits

(a) An eligible Participant's "Annuity Starting Date" shall be the first day of the first full

month after the Participant has fulfilled all of the conditions for entitlement to a

benefit. A Participant who retires before his Normal Retirement Age and earns

additional benefit accruals under the Plan through re-employment will have a

separate Annuity Starting Date pursuant to the above paragraph with respect to those

additional accruals, except that an Annuity Starting Date that is on or after Normal

Retirement Age shall apply for any additional benefits accrued through re-

employment after the Annuity Starting Date.

After the payment of benefits has begun, a benefit payment option that has been

selected may not be revoked nor the Pensioner's benefits increased by reason of

subsequent divorce or death of the spouse except in accordance with a Joint and

Survivor "pop-up" option in effect in accordance with Sections 5.02(i), (j) and (k).

Notwithstanding any other provision of the Plan, all distributions will be made in

accordance with the requirements of sections 1.401(a)(9)-1 through 1.401(a)(9)-9 of

the regulations under section 401(a)(9) of the Internal Revenue Code, including the

incidental benefit requirements of section 401(a)(9)(G).

(b) However, in no event, unless otherwise elected, shall the payment of benefits begin

later than the 60th day after the later of the close of the calendar year in which:

(i) The Participant attains Normal Retirement Age, or



139

Section 6.07 Commencement of Benefits (Continued)

(b) (Continued)

(ii) The Participant terminates his Covered Employment and retires as that term

is defined in Section 6.08 of this Article.

(c) Notwithstanding any provision of the Plan to the contrary:

(i) Effective April 1, 1992 for Participants covered by the terms of a collective

bargaining agreement and effective April 1, 1990 for all other Participants,

the Fund will begin payments to all Participants by their Required Beginning

Date, whether or not they apply for benefits.

(ii) A Participant's "Required Beginning Date" is April 1 of the Calendar Year

following the year the Participant reaches age 70 1/2 provided that, for a

Participant who reaches age 70 1/2 before 1988 other than a 5% owner, the

Required Beginning Date is April 1 of the calendar year in which the

Participant ceases work in Covered Employment if that is later.

Any additional benefits earned by a Participant in Covered Employment

after age 70 1/2 will be determined at the end of each Plan Year and will be

payable as of February 1 following the end of the Plan Year in which it

accrued.



140


(c) (Continued)

(ii) (Continued)

Effective January 1, 1999, a Participant's "Required Beginning Date" is the

later of April 1 of the Calendar Year following the year the Participant

reaches age 70-1/2 or date of retirement. Notwithstanding the foregoing, the

“Required Beginning Date” of a Participant who is a 5% owner is April 1 of

the Calendar Year following the year in which the Participant reaches age

70-1/2.

(iii) If a Participant who is definitely located fails to file a completed application

for benefits on a timely basis, the Fund will establish the Participant's

Required Beginning Date as defined in paragraph (ii) above and begin

payments as follows:

(A) If the Actuarial Present Value of the Participant's pension is not more

than $1,000 ($5,000 with respect to distributions made on or after

January 1, 2000 and prior to March 28, 2005), the benefit will be

paid in a single-sum payment.

(B) In any other case, in the form of a 50% Husband-and-Wife Pension

calculated on the assumption that the Participant is and has been

married for at least one year by the date payments start and that the

husband is 3 years older than the wife.



141


(c) (Continued)

(iii) (Continued)

(C) The form of benefit payment specified herein will be irrevocable

once it begins, with the sole exception that it may be changed to a

single-life annuity if the Participant proves that he did not have a

Qualified Spouse (including an alternate payee under a QDRO) on

the Required Beginning Date; also, the amounts of future benefits

will be adjusted based on the actual age difference between the

Participant and the Spouse if proven to be different from the

foregoing assumptions.

(D) Federal income tax and any other applicable taxes will be withheld

from the benefit payments as required by law or determined by the

Trustees to be appropriate for the protection of the Fund and the

Participant.



142

Section 6.08 Retirement (a) General Rule

To be considered retired, a Participant must withdraw completely from any further

employment, in any capacity, aboard any vessel whatsoever and with respect to any

Participant not on the pension rolls as of May 23, 1984, he shall, in addition, not be

considered retired until his accumulated vacation period has elapsed and "his return-

to-work date" has been reached.

(b) Exceptions

For the purpose of determining whether a Participant has separated from

employment as described in paragraph (a), employment aboard fishing vessels,

yachts, dredges, oceanographic, or research vessels of 300 feet or less in length shall

not be counted. In addition, the Trustees may also add from time to time other small

craft which the Trustees consider similar type vessels.

After Normal Retirement Age - Notwithstanding anything set forth in this Section

6.08, a Participant who has reached Normal Retirement Age as defined in Article I, Section

1.13 shall be considered to be separated from employment as described in paragraph (a) if

he is not employed or paid for five or more days during any one calendar month in

employment which would otherwise constitute employment forbidden by this Section.



143

Section 6.09 Suspension of Benefits

(a) Before Normal Retirement Age

(i) A Pensioner's monthly benefit shall be suspended for any month in which

the Participant is employed in "Disqualifying Employment" before he has

attained Normal Retirement Age as defined in Article I, Section 1.13.

"Disqualifying Employment," for the period before Normal Retirement Age,

is:

Any employment aboard any vessel whatsoever with the exception that

effective August 26, 1976, Pensioners who are on the pension rolls prior to

June 16, 1975 may be authorized to accept employment aboard any vessels

engaged in offshore oil drilling, exploration or research, or on vessels whose

operations are ancillary to such offshore oil operation, including but not

limited to, supply boats, oil drilling vessels or oil drilling rigs and short term

employment on vessels engaged in trial runs and vessels being delivered,

provided, however, that commencing with the date of ratification of the

Organization's 1978-1981 Offshore Collective Bargaining Agreement, each

Pensioner must obtain prior written authorization with each job assignment

through the Offices of the Organization, with written notice of such

employment being furnished to the Board of Trustees; and effective June 16,

1981, Pensioners who are on the pension rolls for a period of 36 months

shall be authorized, without penalty, to accept employment aboard any



144

Section 6.09 Suspension of Benefits (Continued) (a) Before Normal Retirement Age (Continued)

(i) (Continued)

vessels engaged in offshore oil drilling, exploration or research, or on vessels

whose operations are ancillary to such offshore oil operation, including but

not limited to, supply boats, oil drilling vessels or oil drilling rigs and short

term employment on vessels engaged in trial runs and vessels being

delivered, provided that each such Pensioner must obtain prior written

authorization for each job assignment through the Offices of the

Organization, with written notice of such employment being furnished to the

Board of Trustees; and effective June 1, 1997, Pensioners shall be

authorized, without penalty, to accept employment aboard any vessels

engaged in offshore oil drilling, exploration or research, or on vessels whose

operations are ancillary to such offshore oil operation, including, but not

limited to supply boats, oil drilling vessels or oil drilling rigs and short term

employment on vessels engaged in trial runs and vessels being delivered,

provided that each such Pensioner must obtain prior written authorization for

each job assignment through the Offices of the Organization, with written

notice of such employment being furnished to the Board of Trustees; and

effective June 1, 1998, Pensioners shall be authorized, without penalty, to

accept employment aboard mercy ships and employment aboard any vessels

engaged in offshore drilling, exploration or research, or on vessels whose

operations are ancillary to such offshore oil operation, including, but not



145

Section 6.09 Suspension of Benefits (Continued)

(a) Before Normal Retirement Age (Continued)

(i) (Continued)

limited to, supply boats, oil drilling vessels or oil drilling rigs, provided that

each such Pensioner must obtain prior written authorization for each job

assignment through the Offices of the Organization, with written notice of

such employment being furnished to the Board of Trustees; and effective

June 1, 2003, Pensioners shall be authorized, without penalty, to accept

employment aboard mercy ships, any vessels 300 feet or less in length and

any vessels engaged in offshore drilling, exploration or research, or on

vessels whose operations are ancillary to such offshore oil operation,

including, but not limited to, supply boats, oil drilling vessels or oil drilling

rigs, provided that such Pensioner must obtain prior written authorization for



effective January 1, 2007, Pensioners shall be authorized, without penalty, to

accept employment, other than Covered Employment, aboard any vessels

covered by collective bargaining agreements with or manned by personnel

represented by Membership Groups affiliated with the Organization, as well

as employment aboard mercy ships, any vessels 300 feet or less in length and

any vessels engaged in offshore drilling, exploration or research, or on

vessels whose operations are ancillary to such offshore oil operation,



146



(i) (Continued)

including, but not limited to, supply boats, oil drilling vessels or oil drilling

rigs, provided that such Pensioner must obtain prior written authorization for



effective September 1, 2009, Pensioners who worked as licensed engineers

before they retired and who retired because they were unable to work in

Covered Employment due to the limited number of billets available for such

rating shall be authorized, without penalty, to accept employment, other than

Covered Employment, aboard any vessels, provided that such Pensioner

must obtain prior written authorization for each job assignment through the

Offices of the Organization, with written notice of such employment being

furnished to the Board of Trustees; and effective January 1, 2011, Pensioners

shall be authorized, without penalty, to accept employment, other than

Covered Employment, aboard any maritime academy education or training

vessel, only when they are sailing as Masters aboard such vessels, provided

that such Pensioner must obtain prior written authorization for each job

assignment through the Offices of the Organization, with written notice of

such employment being furnished to the Board of Trustees; and effective

October 1, 2011, Pensioners shall be authorized, without penalty, to accept

employment, including Covered Employment, aboard any military vessels



147



(i) (Continued)

manned pursuant to a federal government contract and covered by collective

bargaining agreements with or manned by Membership Groups affiliated

with the Organization, provided that such Pensioner must obtain prior

written authorization for each job assignment through the Offices of the

Organization, with written notice of such employment being furnished to the

Board of Trustees; and effective October 1, 2013, Pensioners between the

ages of 55 and 65 shall be authorized, without penalty, to accept

employment, including Covered Employment, aboard any vessel for the

lesser of 5 days or 40 hours as a Port Relief Officer, provided that such

Pensioner must obtain prior authorization for each such job assignment

through the Offices of the Organization, with written notice of such

employment being furnished to the Board of Trustees; and effective January

1, 2014 until December 31, 2014, unless further extended by the Board of

Trustees, Pensioners shall be authorized, without penalty to accept

employment, other than Covered Employment, aboard any maritime

academy education or training vessel, when they are sailing other than as

Masters aboard such vessels, provided that such Pensioner must obtain prior

written authorization for each job assignment through the Office of the

Organization with written notice of such employment being furnished to the

Board of Trustees.



148



(ii) In addition, a Pensioner's monthly benefits shall be suspended for an

additional period equal to:

(A) the greater of six (6) months or two times the period of actual

employment (including earned vacation time), if such forbidden

employment commenced on or after September 1, 1988; or

(B) Six (6) months, if such forbidden employment commenced prior to

September 1, 1988; provided that such additional period shall not

extend beyond his attainment of Normal Retirement Age.

(b) After Normal Retirement Age

If the Pensioner has attained Normal Retirement Age, his monthly benefit shall be

suspended for any month in which he worked or was paid for at least 5 days in

"Totally Disqualifying Employment." "Totally Disqualifying Employment" means

employment of the type described in paragraph (a)(i) of this Section 6.09.

(c) No Suspension after Required Beginning Date

No benefits will be suspended pursuant to this Article after a Participant's Required

Beginning Date, as defined in Section 6.07 (c)(ii).

(d) Definition of Suspension

"Suspension of Benefits" for a month means non-entitlement to benefits for the

month. If benefits were paid for a month for which benefits were later determined to

be suspendible, the overpayment shall be recoverable through deductions from



149


(d) Definition of Suspension (Continued)

future pension payments, pursuant to subsection (g), and in accordance with Section

6.10.

(e) Notices

(i) Upon commencement of pension payments, or upon a Participant's

attainment of Normal Retirement Age, the Trustees shall notify the

Participant of the Plan's rules governing suspension of benefits, including

identity of the types of work which are considered disqualifying. Upon

resumption of pension payments following suspension, new notification

shall be given to the Participant if there has been any material change in the

suspension rules.

(ii) A Pensioner shall verify to the Trustees on forms provided by the Plan

Office that he is not working in "Disqualifying Employment" or "Totally

Disqualifying Employment." Such verification shall be required at

reasonable intervals to be determined by the Trustees. Failure to provide

such verification may result in the withholding of benefits until such

verification is received.

(iii) A Pensioner shall notify the Plan in writing within 15 days after starting any

work of a type that is or may be "Disqualifying" under Sections 6.09(a) or

(b) and without regard to the number of days of such work (that is, whether

or not less than 5 days in a month).



150


(e) Notices (Continued)

(iii) (Continued)

If a Pensioner has worked in such employment in any month and has failed

to give timely notice to the Plan of such employment, the Trustees shall

presume that he worked for at least 5 days in such month any subsequent

month before the Pensioner gives notice that he has ceased the employment.

The Pensioner shall have the right to overcome such presumption by

establishing that his work was not in fact an appropriate basis, under the

Plan, for suspension of his benefits. The Trustees shall inform all Pensioners

at least once every 12 months of the re-employment notification

requirements and the presumptions set forth in this paragraph.

(iv) A Pensioner whose pension has been suspended shall notify the Trustees

when “Disqualifying” or “Totally Disqualifying Employment” has ended.

The Trustees shall have the right to hold back benefit payments until such

notice is filed with the Plan and the Pensioner has demonstrated to the

Trustees' satisfaction that he is not working in “Disqualifying” or “Totally

Disqualifying Employment.”

(v) A Participant may ask the Trustees whether a particular employment will be

“Disqualifying” or “Totally Disqualifying.” The Plan shall provide the

Participant with its determination which shall be subject to review in

accordance with subparagraph (f) below.



151


(e) Notices (Continued)

(vi) The Trustees shall inform a Participant of any suspension of his benefits by

notice given by personal delivery or first class mail during the first calendar

month in which his benefits are withheld. Such notice shall include a

description of the specific reasons for the suspension, a description and a

copy of the relevant plan provisions, reference to the applicable regulations

of the U.S. Department of Labor, a statement of the suspension and a

description of the procedures with any necessary forms that must be filed

before benefits can be resumed.

(f) Review

A Participant shall be entitled, pursuant to Section 6.05, to a review of a suspension

determination by written request filed with the Trustees within 60 days of the notice

of suspension of benefits. The same right of review shall apply, under the same

terms, to a determination by or on behalf of the Trustees that contemplated

employment will be disqualifying.

(g) Resumption of Benefit Payments

(i) Benefits shall be resumed for months after the last month during which the

Pensioner is employed in "Totally Disqualifying Employment" or after the

applicable "Suspension" period of Section 6.09(a)(ii). Payments shall begin

no later than the third month after such period, provided the Participant has

complied with the notification requirements of paragraph (e)(iv) above.



152


(g) Resumption of Benefit Payments (Continued)

Such first payment shall be in accordance with applicable Department of

Labor Regulations.

(ii) Overpayments attributable to payments made for any month or months for

which the Pensioner was employed in "Disqualifying" or "Totally

Disqualifying Employment" shall be deducted from pension payments

otherwise paid or payable subsequent to the period of suspension. A

deduction from a monthly benefit for a month after the Pensioner attained

Normal Retirement Age shall not exceed 25% of the amount of Pensioner's

monthly benefit (before deduction), except that the Trustees may withhold

up to 100% of the first payment made upon resumption after a suspension

(which may be for up to three months of benefits) in order to recoup such

overpayment. If a Pensioner dies before recoupment of overpayment has

been completed, deductions shall be made from the benefits payable to his

Beneficiary or Surviving Spouse receiving a pension subject to the 25%

limitation on the rate of deduction.

Section 6.10 Benefit Payments Following Suspension

(a)

(i) The monthly amount of pension when resumed after suspension shall be

determined under paragraph (ii) and adjusted for any optional form of

payment in accordance with paragraph (ii). Nothing in this section shall be



153

Section 6.10 Benefit Payments Following Suspension (Continued)

(a) (Continued)

(i) (Continued)

understood to extend any benefit increase or adjustment effective after the

Participant's initial retirement to the amount of pension upon resumption of

payment, except to the extent that it may be expressly directed by other

provisions of the Plan.

(ii) Resumed Amount. If the pension was payable after Normal Retirement

Age, resumption shall be at the same monthly amount as was paid prior to

the suspension. Otherwise, the amount shall be determined as if it were then

being determined for the first time, but on the basis of an adjusted age. The

adjusted age shall be the age of the Participant at the beginning of the first

month for which payment is resumed, reduced by (a) the months for which

he had received benefits to which he was entitled and (b) the months for

which his benefits were suspended because of "Totally Disqualifying

Employment", as defined in subsection (b) of Section 6.09. This amount

shall be determined before adjustment, if any, for pension accrual based on

re-employment, for changes in the Plan adopted after the participant first

retired and for any offset because of prior overpayments.

(iii) The amount determined under the above paragraph shall be adjusted for the

Participant and Spouse Pension if the Pensioner had so previously elected.



154

Section 6.10 Benefit Payments Following Suspension (Continued)

(b) A Pensioner who returns to work in Covered Employment and who earns one Year

of Vesting Service during such re-employment may continue to earn additional

Pension Credits in accordance with the rules of this Plan. Such additional credit will

be at the benefit level in effect at the same time it is earned. Upon subsequent

retirement an additional benefit based on Pension Credits earned during re-

employment, the Pensioner's age upon subsequent retirement and any adjustments to

"Pay" will be calculated and will be added to the resumed amount determined under

Section 6.10(a)(ii), subject to offset because of prior receipt of benefits or prior

overpayment. The total amount shall be the Pensioner's new pension benefit.

(c) A Participant and Spouse Option in effect prior to suspension of benefits shall

remain effective if the Pensioner's death occurs while his benefits are in suspension.

(d) An annuity Pensioner on the pension rolls as of August 1, 1993 who returned from

pension status to Covered Employment in order to alleviate the shipping emergency

caused by the Vietnam War shall have his Pension amount recalculated to reflect

those additional days in Covered Employment during the period January 1, 1966

through June 30, 1971 not previously included in the determination of his pension

amount. Any increase associated with the inclusion of these additional days of

service in the calculation of the Pensioner's benefit amount shall first apply to

monthly pension payments commencing on and after August 1, 1993.



155

Section 6.11 Re-Employment of Pensioners during American Vessel Re-flagging

(a) Policy Statement

The Trustees adopt this Section 6.11 as a temporary measure in response to the re-

flagging of American vessels that has created a need for skilled American mariners

to serve in a training capacity on these vessels. Although a substantial portion of the

manpower requirement can be filled by the pool of active seamen, the Organization

and Employer interests require a small number of specially qualified licensed

officers who are existing Pensioners of this Plan to serve as Master on a short term

basis. It is the Trustees' intent that an existing Pensioner who follows the Rules of

this Section and who serves on re-flagged vessels in a training capacity will suffer

no suspension of pension benefits during the period of this Covered Employment on

the re-flagged vessels. This program will terminate as of March 1, 1996.

(b) Rules

Rule 1. To apply under the provision of this Section and avoid a suspension

of benefits pursuant to Section 6.09, a Pensioner must have a bona

fide offer of employment for training work on a foreign flag vessel

being run directly or indirectly by an Employer.

Rule 2. A Pensioner who wishes to apply under the provisions of this Section

must file a written application through the offices of the

Organization. The Chairman and Secretary are authorized to grant



156

Section 6.11 Re-Employment of Pensioners during American Vessel Re-flagging (Continued)

(b) Rules (Continued)

Rule 2. (Continued)

the application if it appears that the job offered to the Pensioner

cannot be readily filled by an Employee who is a Participant in this

Plan. A Pensioner may not begin shipboard employment before his

application is approved without suffering a suspension of his

benefits.

Rule 3. The name of the Pensioner and the circumstances of the employment

shall be reported to the Trustees at their next regular meeting. If the

Trustees refuse to ratify the action of the Chairman and Secretary, the

Pensioner shall be so notified and shall be given a reasonable time to

cease employment prior to the suspension of his benefits under the

Plan.

Rule 4. A Pensioner who returns to work under this Section shall remain a

Pensioner and shall continue to receive his monthly benefit from this

Plan without suspension.

Rule 5. No one approved under this Section shall work for a shipboard

period extending past 120 days of employment during each

employment segment without suffering a suspension of their benefit

under the Plan.



157


(b) Rules (Continued)

Rule 6. A Pensioner who applies under this Section must agree in writing

that if his application is granted he will abide by the Rules of this

Section 6.11 and that, upon notice from the Trustees, he will give up

his shipboard employment or face the suspension of his benefits

under the Plan.

Rule 7. Any Pensioner who returns to work under this Section after

completing more than 62 Days of Service in Covered Employment in

the preceding calendar year, and who works a sufficient number of

days in Covered Employment to earn additional Pension Credit

under this Plan, will have his benefit adjusted accordingly pursuant

to Article VI of the Plan. Any additional benefits earned shall be

offset by the actuarial value of any non-suspended benefits he

received while working in Covered Employment, or, if the Pensioner

retired under the Lump-Sum Payment Option, the actuarial value of

any non-suspended benefits he would have received if he had not

chosen the Lump-Sum Payment Option.



158


(b) Rules (Continued) Rule 8. Notwithstanding any other provision of these Restated Plan

Regulations to the contrary, any Pensioner who returns to work after

completing fewer than 62 Days of Service in Covered Employment

in the preceding calendar year, shall not receive any credit for

eligibility, vesting or benefit accrual purposes until he has completed

at least 125 days of Service after his return. Thereafter, any

additional benefits earned shall be offset in the manner described

above in Rule 7.

Section 6.12 Vested Status or Non-forfeitability (a) The Pension Reform Act of 1974 required that certain benefits under this Plan be

vested (in the term used in the Act, "Nonforfeitable").

(b) Vested Status is earned as follows:

(i) A Participant's right to his Pension is nonforfeitable upon his attainment of

Normal Retirement Age, except to the extent that benefits are canpursuant to

Section 7.05, because the employer has ceased to contribute to the Plan with

respect to that employment in which the Participant was employed.

(ii) A Participant acquires Vested Status after completion of ten years of Vesting

Service (except of course for years of Vesting Service that are not taken into

account because of Break in Service). However, a Non-Bargained



159

Section 6.12 Vested Status or Non-forfeitability (Continued)

(b) (Continued)

(ii) (Continued)

Employee who has at least one Day of Service after December 31, 1988 will

acquire vested status after he has accumulated 5 years of Vesting Service.

(iii) A Participant acquires Vested Status once he has met the age and service

requirements for a Regular, Early, Reduced, Deferred Vesting or Deferred

10-Year Pension.

(iv) Effective January 1, 1999, for all Participants with at least one day of

Pension Credit on or after January 1, 1999, a Participant acquires Vested

Status once he has met the age and service requirements of a Regular, Early,

Reduced, Deferred Vesting or Deferred 10-Year Pension.

(c) ERISA also provides certain limitations on any plan amendments that may change

the Plan's vesting schedule. In accordance with those legal limitations, no

amendment of this Plan may take away a Participant's Vested Status if he has

already earned it at the time of the amendment. Also, an amendment may not

change the schedule on the basis of which a Participant acquired Vested Status,

unless each Participant who has credit for at least three years of Vesting Service at

the time of the amendment is adopted or effective (whichever is later) is given the

option of achieving Vesting Status on the basis of the pre-amended schedule. That

option may be exercised within 60 days after the latest of the following dates:

(i) when the amendment was adopted; or



160

Section 6.12 Vested Status or Non-forfeitability (Continued)

(c) (Continued)

(ii) when the amendment became effective; or

(iii) when the Participant was given written notice of the amendment.

(d) For purposes of applying the provisions of this Section and of determining when a

Participant has acquired nonforfeitable rights, as defined under law, the vesting

schedule of this Plan consists of 100 percent non-forfeitability for a Participant who

has completed at least 10 years of Vesting Service, or for a Non-Bargained

Employee with at least one Day of Service after December 31, 1988, after he has

accumulated 5 years of Vesting Service. While this Plan provides Early Retirement

Service and Disability Pensions on the basis of requirements that may be met by

some Participants who have not completed 10 years of Vesting Service, such

eligibility rules represent provisions of the Plan above and beyond its vesting

schedule.

Section 6.13 Vested Status or Non-forfeitability After Attaining Normal Retirement Age

Subject to the provisions of Section 6.08 of this Article (Retirement Defined) and Article

III, Section 3.13, the benefits to which a Participant is entitled under this Plan upon his

attainment of Normal Retirement Age are vested (nonforfeitable), subject, however, to

retroactive amendment made within the limitations of Section 411(a) (C) of the Internal Revenue

Code and Section 302(c) (B) of ERISA. Subject to the provisions of Section 6.08 of this Article

(Retirement Defined) and Article III, Section 3.13, the benefits to which his or her surviving

spouse may be entitled shall likewise be nonforfeitable.



161

Section 6.13 Vested Status or Non-forfeitability After Attaining Normal Retirement Age (Continued) A Participant has attained "Vested Status" when he has fulfilled the age and service

requirements for receipt of a nonforfeitable pension after his retirement and his attainment of

Normal Retirement Age in accordance with Sections 3.13 or 3.15 of Article III and payment of any

benefits shall be subject to the provisions of Section 6.08 of this Article (Retirement Defined) and

Article III, Section 3.13.

However, an Employee not covered by a collective bargaining agreement who has at least

one day of Covered Employment after December 31, 1988 will attain Vested Status after he has

accumulated 5 Years of Vesting Service.

Section 6.14 Payments to Incompetents or Minors

(a) In the event it is determined that a Pensioner, or an adult beneficiary is unable to

care for his or her affairs because of illness, accident or incapacity either mental or

physical, any payment due unless claim shall have been made theretofore by a

legally appointed guardian, committee or other legal representative shall be applied

to the maintenance and support of such Pensioner or adult beneficiary.

(b) In the event the beneficiary is a minor, the Trustees shall, until claim is made by the

duly appointed guardian or committee of such minor, make such payments, in full or

at such rate as they may determine is required for the maintenance and support of the

minor (provided the full amount is eventually paid), to any relative by blood or

connection by marriage of such beneficiary, or to any other person or institution

appearing to have assumed custody of such Beneficiary.



162

Section 6.14 Payments to Incompetents or Minors (Continued)

(c) Any application or payment made pursuant to this Section 6.14 shall constitute a full

discharge of the Trustees to the extent thereof.

Section 6.15 Non-Assignment of Benefits

(a) To the end of making it impossible for Participants or Pensioners covered by these

Regulations, improvidently to imperil the provisions made for their support and

welfare by directly anticipating, pledging or disposing of their retirement payments,

hereunder, it is hereby expressly stipulated that no Participant or Pensioner

hereunder shall have any right to assign, alienate, transfer, sell, hypothecate,

mortgage, encumber, pledge, commute or anticipate any retirement payments, and

that such payments shall not in any way be subject to any legal process to levy

execution upon, or attachment or garnishment proceedings against, the same for the

payment of any claim against any Participant or Pensioner; nor shall such payments

be subject to the jurisdiction of any bankruptcy court or insolvency proceedings by

operation of law or otherwise, and any such assignment shall be void and of no

effect whatsoever, and in any such event, the Trustees shall have the right to

terminate any pension payments to such Participant or Pensioner, provided,

however, that a Pensioner shall have the right to authorize deductions from his

monthly pension payment for those purposes described in Section 6(a) of Article V

of the Agreement and Declaration of Trust establishing the M.M.& P. Pension Plan.



163

Section 6.15 Non-Assignment of Benefits (Continued)

(b) Notwithstanding subsection (a) or any other provision of the Plan, benefits shall be

paid in accordance with a Qualified Domestic Relations Order as defined in Section

206(d)(3) of the Act, and with written procedures adopted by the Trustees in

connection with such Orders, which shall be binding on all Participants,

beneficiaries and other parties. The Plan's interpretation of such Orders shall be

subject to review under the arbitrary and capricious standard. In no event shall the

existence or enforcement of a Qualified Domestic Relations Order cause the Plan to

pay benefits with respect to a Participant in excess of the Actuarial Present Value of

the Participant's benefits without regard to the Order, and benefits otherwise payable

under the Plan shall be reduced by the Actuarial Present Value of any payment

ordered to be made under a Qualified Domestic Relations Order. Section 1.16 of

Article I shall apply to determine the Actuarial Present Value of a benefit in

connection with a Qualified Domestic Relations Order, if necessary.

(c) Notwithstanding subsection (a) or any other provision of the Plan, if a Participant

commits a breach of fiduciary duty to the Plan or commits a criminal act against the

Plan, such Participant's benefits may be reduced if a court order or requirement to

offset such benefits arises from:

(i) a judgment of conviction for a crime involving the Plan;

(ii) a civil judgment (or consent order or decree) that is entered into by a court in

an action brought in connection with a breach (or alleged breach) of

fiduciary duty under ERISA; or



164

Section 6.15 Non-Assignment of Benefits (Continued)

(c) (Continued)

(iii) a settlement agreement entered into by the Participant and either the

Secretary of Labor or the Pension Benefit Guaranty Corporation in

connection with a breach of fiduciary duty under ERISA by a fiduciary or

any other person.

If the Participant is married at the time the benefit is offset to satisfy the liability,

spousal consent to the offset will be required unless:

(i) the spouse is also required to pay an amount to the Plan;

(ii) the judgment, order, decree or settlement preserves an annuity right for the

spouse; or

(iii) the spouse previously waived the right to annuity benefits.

The spouse's consent must be in writing and witnessed by a Plan

representative or notary public. No consent shall be required if it has been

established to the satisfaction of the Plan representative that there is no

spouse, the spouse cannot be located or because of other circumstances that

may be prescribed in Treasury Regulations.

Section 6.16 Vested Interest

No person shall have any right or interest in any of the income or property received or

held by or for the account of the Pension Trust, and no person shall have any vested right to

benefits, except through fulfillment of all the conditions and requirements set forth in these

Regulations.



165

Section 6.17 Maximum Benefits

Notwithstanding any other provision of this Plan, no Participant may accrue or

receive a pension benefit under the Plan in excess of the maximum benefit permitted under

Section 415 of the Internal Revenue Code, which is hereby incorporated by reference, including

cost-of-living adjustments prescribed by Section 415(d) of the Code prior to and after severance

from Covered Employment and receipt of pension benefits. If a Participant has at any time been

covered by a defined benefit plan maintained by an Employer (other than another multiemployer

plan), (a) the limitations of Section 415 of the Internal Revenue Code shall also apply to the sum

of the benefits under this Plan attributable to his employment by that Employer and the benefits

under the Employer’s other plans, and (b) any reduction in projected annual benefits required to

avoid exceeding the limitations of Section 415(b) shall be made first by the Employer’s other

plans. The application of the provisions of this Section shall not cause the maximum permissible

benefit determined in accordance with Code Section 415 that is accrued, distributed, or otherwise

payable for any Participant to be less than the Participant’s accrued benefit as of December 31,

2007 under the provisions of the Plan that were both adopted and in effect before April 5, 2007,

to the extent permitted by law.



166

Section 6.18 Direct Rollover of Benefits

(a) This Section applies to distributions made on or after January 1, 1993.

Notwithstanding any provision of the plan to the contrary that would otherwise

limit a Distributee's election under this Section, a Distributee may elect, at the

time and in the manner prescribed by the Plan administrator, to have any portion

of an Eligible Rollover Distribution paid directly to an Eligible Retirement Plan

specified by the Distributee in a Direct Rollover; provided, however, that a

Beneficiary other than the Participant’s Spouse (or a former Spouse who retains

spousal rights under the terms of a Qualified Domestic Relations Order) may

make a direct rollover only to an individual retirement account or annuity

described in Section 408(a) or (b) of the Code and may not roll over distributions

received before January 1, 2008.

(b) Definitions

(i) An Eligible Rollover Distribution is any of the following:

(1) a partial lump sum distribution made in accordance with Section

3.21(a);

(2) a full lump sum distribution made in accordance with Section 3.22,

Section 5.03(c) or Section 6.07(c)(iii)(A); or

(3) a death benefit paid in accordance with Section 5.09;

provided, however, that a distribution is not an Eligible Rollover

Distribution to the extent that it is either not includible in the Distributee’s

gross income for federal income tax purposes or must be distributed in



167

Section 6.18 Direct Rollover of Benefits (Continued)

(b) Definitions (Continued)

(i) (Continued)

order to comply with the minimum distribution requirements of Section

401(a)(9) of the Code.

(ii) Eligible Retirement Plan: An Eligible Retirement Plan is an individual

retirement account described in Section 408(a) of the Code, an individual

retirement annuity described in Section 408(b) of the Code, an annuity

plan described in Section 403(a) of the Code, or a qualified trust described

in Section 401(a) of the Code, that accepts the Distributee's Eligible

Rollover Distribution. Effective for distributions prior to January 1, 2002,

in the case of an Eligible Rollover Distribution to the surviving spouse, an

Eligible Retirement Plan is an individual retirement account or individual

retirement annuity. Effective for distributions on or after January 1, 2002,

an Eligible Retirement Plan shall also mean an annuity contract or

custodial account described in Section 403(b) of the Code and an eligible

plan under Section 457(b) of the Code which is maintained by a state,

political subdivision of a state, or any agency or instrumentality of a state

or political subdivision of a state and which agrees to account separately

for amounts transferred into such plan from this Plan. The definition of

Eligible Retirement Plan shall also apply in the case of a distribution to a

surviving spouse, or to a spouse or former spouse who is the alternate



168

Section 6.18 Direct Rollover of Benefits (Continued)

(b) Definitions (Continued)

(ii) Eligible Retirement Plan: (Continued)

payee under a qualified domestic relations order, as defined in Section

414(p) of the Code.

(iii) Distributee: A Distributee includes all Participants. In addition, the

Participant's surviving spouse and the Participant's spouse or former

spouse who is the alternate payee under a Qualified Domestic Relations

Order, as defined in Section 414(p) of the Code, are Distributees with

regard to the interest of the spouse or former spouse, as is a nonspouse

beneficiary as provided in Subsection (c) below.

(iv) Direct Rollover: A Direct Rollover is a payment by the Plan to the

Eligible Retirement Plan specified by the Distributee.

(c) A nonspouse beneficiary, within the meaning of Section 401(a)(9) of the Code,

may authorize a direct rollover to an individual retirement account or annuity

described in Sections 408(a) or 408(b) of the Code (collectively referred to as an

“IRA”) that is established on behalf of the designated beneficiary and that will be

treated as an inherited IRA pursuant to the provisions of Section 402(c)(11) of the

Code. The determination of any required minimum distribution within the

meaning of Section 401(a)(9) of the Code that is ineligible for rollover will be

made in accordance with IRS Notice 2007-7, Q&A 17 and 18.



169

Section 6.19 Actuarial Adjustment for Delayed Retirement

(a) Effective January 1, 1997, if a Participant, after reaching Normal Retirement Age,

fulfills all conditions for the commencement of benefit payments as provided

under the Plan except for the making of an "Application" for the benefit and the

furnishing of all required information or proof, as provided in Sections 6.01 and

6.02 of this Article, the benefit to which the Application relates will be actuarially

increased for each complete calendar month between:

(i) the later of the Participant's Normal Retirement Age or the date the

Participant is eligible to make an Application for the benefit, and

(ii) the first day of the first full month after the Participant makes the

application and fulfills all Plan requirements for the benefit.

However, no actuarial increase will be provided for any calendar month

included in a period where the Participant has his benefit suspended

pursuant to Section 6.09 of this Article or any calendar month included in

a calendar year where the Participant earns pension credit under Section

6.10 (b) of this Article or under Article IV herein.

(b) Actuarial increases provided in paragraph (a) above are subject to offset for prior

receipt or overpayment of any benefits provided under the Plan except for benefit

payments provided under Section 6.07 (c) of this Article.



170

Section 6.19 Actuarial Adjustment for Delayed Retirement (Continued)

(c) As of the first day of the first full month after a Participant makes an Application

for a benefit subject to actuarial adjustment under paragraph (a) above, the benefit

amount, plus any actuarial increases provided under paragraph (a), is paid in a

benefit payment form provided by the Plan and elected by the Participant, or in

the form of a 50% Participant and Spouse Pension if no other form is elected, as

provided under Article V herein.

(d) The actuarial increase for a complete calendar month for which a benefit is

subject to actuarial adjustment under paragraph (a) above will be 1% per month

for the first 60 complete calendar months a benefit is actuarially adjusted pursuant

to paragraph (a), and 1.5% per month for each complete calendar month

thereafter.

Section 6.20 Civil Actions

No person whose application for benefits under the Plan has been denied, in whole or in

part, may bring any action in any court or file any change, complaint or action with any state,

federal or local government agency prior to exhausting his available appeals within the time

limits as provided in this Article. A claimant whose claim for benefits and appeal has been

denied who wishes to bring suit must do so within three (3) years from the date on which the

Board makes its final decision on the claimant’s appeal. For all other actions, the claimant must

commence that litigation within three (3) years of the date on which the violation of Plan terms is

alleged to have occurred. For any action to enforce the terms of the Plan, including but not



171

Section 6.20 Civil Actions (Continued)

limited to benefit claims denied on appeal, if a claimant wishes to file suit, the claimant must

bring that litigation in the United States District Court for the District of Maryland. A claimant

includes, but is not limited to, a Participant and his or her spouse, dependent, or beneficiary, and

any provider suing with respect to payment alleged to be owed by the Plan for services rendered

to a Participant, spouse, or other dependent. This Section applies to all litigation against the Plan,

including litigation in which the Plan is named as a third party defendant.

M.M.& P. PENSION PLAN THIRD RESTATED REGULATIONS ARTICLE VII MISCELLANEOUS

172

Section 7.01 Amendments

The Trustees, in their discretion, may amend these Regulations any time, and from time

to time, to carry out the purposes of the Agreement and Declaration of Trust.

Section 7.02 Interpretation

The Trustees, in their discretion, may interpret and construe the terms and provisions of

these Regulations and any such interpretation or construction shall be binding and final upon all

persons interested.

Section 7.03 New Participating Employer

If an Employer first contributed to the Pension Trust with respect to a full unit of

Participants after August 1, 1968, such Participants shall only receive Pension Credit for

employment with such Employer for periods preceding such first contribution if the actuarial

status of the Plan is not adversely affected, as determined by the Plan actuaries.

Section 7.04 Terminated Employers

If an Employer ceases to comply with the definition of Employer as set forth in Section

1.05 of Article I, or if an Employer is declared by the Trustees to have terminated because of

failure of the Employer to make contributions to the Pension Fund as required by the Employer's

Collective Bargaining Agreement with the Organization, it shall be deemed a Terminated

Employer, and the following shall apply:


173

Section 7.04 Terminated Employers (Continued)

(a) Employment by the Terminated Employer after termination shall not be credited as

Covered Employment.

(b) Employment by that Employer prior to termination shall still be credited under this

Plan except if Break in Service as defined in Article IV, Section 4.05 is incurred.

(c) Notwithstanding Sub-section (b) of this Section, if the Terminated Employer was

exempt from withdrawal liability under the Multi-Employer Pension Plan

Amendments Act of 1980 by virtue of the "free look rule " (ERISA Section 4210),

Pension Credits accrued as a result of Employment with the Terminated Employer

before its contribution date will be cancelled. An Employer's contribution date is

the first date for which it was obligated to contribute to the Plan, or an earlier date,

as determined by the Trustees, based on the Employer's purchase of past service for

its Participants by payment of a lump-sum contribution over and above the

percentage of pay contribution rate specified in the Employer's Collective

Bargaining Agreement with the Organization. Neither the Fund, the Trustees, the

Employers who remain as contributing Employers (with respect to the units for

which they continue to maintain this Plan) or the Organization shall be obliged to

pay benefits based on Pension Credits cancelled under this Section.

(d) There shall be no refund of contributions or reversion of assets to a Terminated

Employer directly or indirectly.


174

Section 7.05 Termination

(a) Right to Terminate. The parties to the Collective Bargaining Agreement shall

have the right to discontinue or terminate this Plan in whole or in part. The rights

of all affected Participants to benefits accrued to the date of termination, partial

termination, or discontinuance to the extent funded as of such date shall be

nonforfeitable.

(b) Priorities of Allocation. In the event of termination, the assets then remaining in

the Plan after providing for any administrative expenses shall be allocated among

the Pensioners, beneficiaries, and Participants in the following order:

(i) First, in the case of benefits payable as a pension:

(A) In the case of the pension of a Participant or beneficiary which was

in pay status as of the beginning of the 3-year period ending on the

termination date of the Plan, to each such pension, based on the

provisions of the Plan (as in effect during the 5-year period ending

on such date) under which such pension would be the least. The

lowest pension in pay status during the 3-year period shall be

considered the pension in pay status for such period.


175

Section 7.05 Termination (Continued)

(b) Priorities of Allocation (Continued)

(i) (Continued)

(B) In the case of a pension of a Participant or Beneficiary which would

have been in pay status as of the beginning of such 3-year period if the

Participant had retired prior to the beginning of the 3-year period and

if his pension had commenced (in the standard form) as of the

beginning of such period, to each such pension based on the provisions

of the Plan (as in effect during the 5-year period ending on such date)

under which the pension would be the least.

(ii) Second, to all other benefits (if any) of the individual under the Plan

guaranteed under Title IV or ERISA.

(iii) Third, to all other vested benefits under this Plan.

(iv) Fourth, to all other benefits under this Plan.

(c) Allocation Procedure

For purposes of Sub-paragraph (b) hereof:

(i) The amount allocated under any paragraph of Sub-paragraph (b) with

respect to any benefit shall be properly adjusted for any allocation of

assets with respect to that benefit under a prior paragraph of that Sub-

paragraph.


176


(c) Allocation Procedure (Continued)

(ii) If the assets available for allocation under any paragraph of Sub-

paragraph), (other than paragraphs (iii) and (iv)) are insufficient to satisfy

in full the benefits of all individuals which are described in that paragraph,

the assets shall be allocated pro-rata among such individuals on the basis

of the Actuarial Present Value (as of the termination date) of their

respective benefits described in that Sub-paragraph.

(iii) This paragraph applies if the assets available for allocation under Sub-

section (b) (iii) are not sufficient to satisfy in full the benefits of

individuals described in that paragraph.

(A) If this paragraph applies, except as provided in Sub-paragraph (B)

below, the assets shall be allocated to the benefits of individuals

described in Sub-section (b) (iii) under the Plan as in effect at the

beginning of the 5-year period ending on the date of Plan

Termination.


177


(c) Allocation Procedure (Continued)

(iii) (Continued)

(B) If the assets available for allocation under Sub-paragraph (A)

above, are sufficient to satisfy in full the benefits described in such

paragraph (without regard to this Sub-paragraph), then for

purposes of Sub-paragraph (A), benefits of individuals described in

such paragraph shall be determined on the basis of the Plan as

amended by the most recent Plan amendment effective during such

5-year period under which the assets available for allocation are

sufficient to satisfy in full the benefits of individuals described in

Sub-paragraph (A) and any assets remaining to be allocated under

Sub-paragraph (A) on the basis of the Plan as amended by the next

succeeding Plan amendment effective during such period.

Section 7.06 Free Look Rule (a) An Employer who withdraws from this Plan in complete or partial withdrawal is

not liable for withdrawal liability to the Plan if the Employer --

(i) first has an obligation to contribute to the Plan after May 25, 1983 at a rate

of contribution no less than the rate adopted by the Trustees for newly

entering Employers, had an obligation to contribute to the Plan


178

Section 7.06 Free Look Rule (Continued)

(a) (Continued)

(ii) for no more than six consecutive Plan Years, and, effective January 1,

1999, for no more than five consecutive Plan years, preceding the date on

which the employer withdraws,

(iii) was required to make contributions to the Plan for each such Plan Year in

an amount equal to less than two percent (2%) of the sum of all Employer

contributions made to the Plan for each such year,

(iv) was first obligated to contribute to the Plan for a Plan Year immediately

following a Plan Year in which the ratio of Plan assets to pension benefit

payment paid during such year was at least eight (8) to one (1), and

(v) has never avoided withdrawal liability because of the application of this

section with respect to the Plan.

(b) In the event an Employer withdraws from the Plan and incurs no withdrawal

liability on account of the provisions of Sub-section (a), all Pension Credit

accrued under the Plan as a result of employment with such employer before its

Contribution Date will be cancelled in accordance with section 7.04(c) of this

Article.


179

Section 7.07 Merger

The Trustees shall not consent to, or be a party to, any merger or consolidation

with another plan, or to a transfer of assets or liabilities to another plan, unless immediately after

the merger, consolidation, or transfer the surviving Plan provides each Participant a benefit equal

to or greater than the benefit each Participant would have received had the Plan terminated

immediately before the merger or consolidation or transfer.

M.M.& P. PENSION PLAN THIRD RESTATED REGULATIONS ARTICLE VIII RECIPROCAL BENEFITS

180

Section 8.01 Purpose

Reciprocal pension benefits and retirement account benefits are to be provided for Plan

Participants who, because of transfer of membership between the M.M.& P. Plan and another

maritime multi-employer pension plan with which the M.M.& P. Pension Plan has a reciprocity

arrangement pursuant to an agreement between the Organization and the union whose members

participate in such other maritime multi-employer pension plan (individually and collectively

referred to hereinafter as "Plan" or "Plans"), may become ineligible for benefits or qualify for a

reduced benefit under either Plan.

Section 8.02 Signatory Funds

(a) Under this reciprocity agreement, the "Host Fund" shall transfer contributions to

the "Primary Fund", subject to the conditions set forth in Section 4. The terms

"Host Fund" and "Primary Fund" shall have the respective meaning set forth in

Section "3".

(b) Each Plan will retain its own Plan Year.

(c) Eligibility for benefits under each respective Plan shall be determined on the basis

of the rules and regulations of each Plan.


181

Section 8.03 Definitions

(a) "Temporary Participant" means, with respect to each Plan, an employee who (i)

was, or is, a Participant in a Plan maintained by a Fund, and either (ii) was a

Participant in the Plan maintained by the other Fund prior to such participation in

(i) above, or (iii) has requested, in the manner provided in subsection (d), that he

be deemed a Participant in the Plan maintained by the other Fund and is licensed

for employment in the job classifications covered by the collective bargaining

agreements pursuant to which the other fund was established and is maintained.

(b) "Host Plan" means, with respect to each Temporary Participant, the Plan

maintained by a Fund to which employer contributions are required on account of

a Participant's employment subsequent to his commencement of participation in

the Primary Plan.

(c) "Primary Plan" means, with respect to each Temporary Participant, the Plan

maintained by a Fund in which an employee participated prior to the first date on

which he was employed under conditions requiring contributions to the Host Plan,

or in which the employee has requested to be deemed a participant, pursuant to

subsection (a) (iii).


182

Section 8.03 Definitions (Continued)

(d) A request by an employee pursuant to subsection (a) (iii) shall be made in writing

and filed with the Plan Administrator. Such request shall be filed prior to the date

on which, in the absence of such request, the employee would become a

participant in the Plan other than the Plan in which he wishes to be deemed a

Participant. Notwithstanding the preceding sentence, a request pursuant to

subsection (a) (iii) shall be deemed timely if made prior to May 1, 1987. Any

request made pursuant to subsection (a) (iii) shall be subject to the approval of the

Board of Trustees of the Plan of which the employee requests to be deemed a

Participant.

Section 8.04 Transfer of Contributions Attributable to Temporary Participants

(a) The Host Plan with respect to a Temporary Participant will transfer to the Primary

Plan the "transferable contributions" received on account of the employment of a

Temporary Participant.

(b) The portion of the employer contributions received on account of the employment

of a Temporary Participant that are transferable contributions herein shall be

equal to the lesser of:

(i) 100% of such employer contributions, or


183

Section 8.04 Transfer of Contributions Attributable to Temporary Participants (Continued)

(b) (Continued)

(ii) The amount of employer contributions that would have been payable on

account of the employment of such Temporary Participant if such

employment had been subject to the terms of the collective bargaining

agreement pursuant to which contributions are made to the Primary Plan;

provided, however, that if there is more than one collective bargaining

agreement, the agreement requiring the smallest employer contributions

shall be the collective bargaining agreement of reference.

(c) Amounts required to be transferred under the terms of this Section shall be

transferred within 30 days after the receipt of the employer contributions

attributable to the employment of a Temporary Participant.


184

Section 8.04 Transfer of Contributions Attributable to Temporary Participants

(Continued)

(d) In the event that an employer is delinquent in making contributions to the Host

Plan, the Primary Plan shall suspend any credit to the Temporary Participants of

such employer until such delinquencies are satisfied. If it is necessary for the

Host Plan to undertake collection procedures against a Temporary Participant's

employer, the Host Plan shall deduct from the amount determined under

subsection (b) of this section the amounts expended in collecting the

delinquencies.

Section 8.05 Crediting of Employment of Temporary Participants

(a) For each Temporary Participant, employment for which employer contributions to

a Host Plan are made shall be treated for all purposes as if it were employment for

which contributions are made to the Primary Plan.

(b) In the event contributions are transferred by the Host Plan to the Primary Plan

pursuant to Section 8.04, the Host Plan shall not credit any service by such

Temporary Participant for purposes of determining eligibility for or the amount of

benefits under the Host Plan.

(c) This provision is not intended to alter or modify in any way the existing eligibility

rules of the Primary Plan or the Host Plan.


185

Section 8.06 Arbitration

This provision shall apply for purposes of this Article, notwithstanding any provision in

either Plan to the contrary. Any dispute, controversy or claim arising out of or relating to the

application of this Reciprocal Agreement or any portion thereof, shall be settled by arbitration

before an arbitrator designated by the American Arbitration Association in accordance with its

then prevailing rules. The award of the arbitrator shall be final, binding and conclusive upon the

parties to the dispute and may be enforced in any federal court of competent jurisdiction.

186

M.M.& P. PENSION PLAN THIRD RESTATED REGULATIONS ARTICLE IX

SPECIAL RULES REQUIRED BY REHABILITATION PLAN

Section 9.01 Rate of Benefit Accrual The maximum rate of benefit accrual for any type of pension provided under Article III with

respect to Pension Credits earned on or after May 1, 2010, is 1.75% of “pay,” as defined in Section 3.03.

For the Plan Year 2010, the accrual rate is determined by applying the rate in effect prior to this

amendment to the fractional Pension Credit earned as of April 30, 2010 (equal to the number of days of

Covered Employment as of that date divided by 260) and the 1.75% rate to the fractional Pension Credit

earned after that date.



187

Section 9.02 Effective Dates and Applicability During the period beginning on the date on which for the first time the Plan issues a notice of

critical status described in section 305(b)(3)(D) of ERISA, the provisions of this Article IX shall apply

to all Participants who engage or have engaged in Covered Employment with Employers that have

agreed to the “preferred schedule” set forth in the rehabilitation plan adopted by the Board of Trustees

on April 1, 2010, as well as to all Participants who engaged in Covered Employment with Employers

who have withdrawn from the Plan, and supersede any conflicting provisions of the Plan.

Section 9.03 Eligibility for Regular Pension

(a) A Participant whose Annuity Starting Date is on or after May 1, 2010, is eligible for an unreduced

Regular Pension only if he has at least 20 years of Pension Credit and either (a) he is at least age

55 or (b) his age and years of Pension Credits total at least 80; provided, however, that a

Participant whose Annuity Starting Date is on or after May 1, 2010 and who is not eligible for an

unreduced Regular Pension under this Section 9.03, but who has at least 20 years of Pension

Credit, will receive pension payments equal to the amount that he would have received if he had

retired on an unreduced Regular Pension until the first pension payment 30 days after the Plan

provides the applicable notice of reduction in adjustable benefits. Thereafter, the amount of his

monthly payment will be determined in accordance with Paragraph (b).

(b) The pension of any Participant who has at least 20 years of Pension Credit as of his Annuity

Starting Date, but who is not eligible for an unreduced Regular Pension, will be reduced to reflect

the period between his Annuity Starting Date and the date on which he would have been eligible

for an unreduced Regular Pension if he had continued in active service and earned one year of



188

Section 9.03 Eligibility for Regular Pension (Continued)

(b) Pension Credit in each future Plan Year. The actuarial assumptions used for this reduction will be

an interest rate of 7.5 percent and the RP 2000 Combined Healthy Mortality Table (100% Male)

with Blue Collar Adjustment.

Section 9.04 Lump Sum Distributions and Social Security Level Pension Income Option

A Participant whose Annuity Starting Date is on or after the date on which the Plan’s initial notice

of certification of critical status is distributed pursuant to section 305(b)(3)(D) of ERISA may not elect a

Lump-Sum Payment Option, a Partial Lump-Sum Payment Option or a Social Security Level Pension

Income Option.

Section 9.05 Death Benefit

The death benefit described in Section 5.09 will not be payable as a lump sum for deaths occurring

after April 30, 2010. Instead, the benefit will be paid as a series of monthly installments until the

Beneficiary has received an amount equal to the lump sum without interest, with each payment equal

to the monthly benefit that the Pensioner would have been receiving immediately before his death if

his Pension had been payable as a single life annuity, reduced by any benefit otherwise payable to the

Beneficiary.

Section 9.06 Cost of Living Adjustments

A Participant or Qualified Spouse who has not already received the maximum number of Cost of

Living Adjustments as of May 1, 2010, may not receive more than one additional Cost of Living

Adjustment under Section 3.19. In any year for which the Cost of Living Adjustment is granted, the

amount of the increase will be determined as follows:



189

Section 9.06 Cost of Living Adjustments (Continued)

(a) The aggregate amount of all monthly benefit increases that would be granted if each eligible

Pensioner and Qualified Spouse received the increase described in Section 3.19 will be

calculated in accordance with the provisions of that Section.

(b) The amount determined under Paragraph (a) will be allocated among the eligible Pensioners

and Qualified Spouses based on the proportion of an eligible individual’s years of Pension

Credit (the deceased Participant’s years of Pension Credit, in the case of a Qualified Spouse)

to the total years of Pension Credit of all eligible Pensioners and Qualified Spouses. For

purposes of this Paragraph (b), (1) the years of Pension Credit with respect to which a Lump

Sum Payment Option was elected under Section 3.22 will be excluded, and (2) the years of

Pension Credit of a Participant who elected a Partial Lump-Sum Payment Option under

Section 3.21 will be reduced by a number of years equal to the number of years of monthly

pension benefits represented by his Partial Lump-Sum Payment amount.

190

Appendix A Page 1 of 12

FOR ALL PENSIONS EFFECTIVE JANUARY 1, 1976 THROUGH AUGUST 22, 1986

M.M.&P. PENSION PLAN REGULATIONS ARTICLE IV

Section 8. Participant and Spouse Pension and Benefits to Survivors

A. General. The Participant and Spouse Pension provides a lifetime pension for a married

Participant plus a lifetime pension for his (or her) surviving spouse, starting after the

death of the Participant. The monthly amount to be paid to the surviving spouse is either

100% or 50% of the reduced monthly amount paid to the Participant depending on the

applicable provision in effect for the Participant at the time of his death. The 100%

Participant and Spouse Pension may be effective if elected by a Participant in accordance

with these Rules. When a Participant and Spouse Pension is in effect, the monthly

amount of the Participant's pension is reduced in accordance with the provisions of

Paragraph (E) from the full amount otherwise payable. (Amendment No. 51 - Adopted

8/3/77)

(Amendment No. 54 - Adopted 11/30/77)

B. Effective Date. The provisions of this Section 8 do not apply to a pension, the effective

date of which was before 1976. (Amendment No. 54 - Adopted 11/30/77)

C. Upon Retirement.

1. Upon retirement, a pension shall be paid in the form of a 50% Participant and

Spouse Pension, unless the Participant has filed with the Trustees in writing either

a timely rejection of that form of pension or an election of the 100% Participant

and Spouse Pension subject to all the conditions of this Section. (Amendment

No. 540 - Adopted 11/30/77)

191


M.M.& P. PENSION PLAN REGULATIONS

C. Upon Retirement. (Continued)

2. A Participant may reject the 50% Participant and Spouse Pension (or revoke a previous

rejection) or elect a 100% Participant and Spouse Pension at any time before the effective

date of his pension, that is, before the first day of the first month for which a pension is

payable to him. Also, any Participant's election of one of the four optional forms of

pension set out in Article IV, Section 8 (E) of the previous Rules of the Plan shall remain

effective in accordance with those Rules and conditions unless rescinded by a revocation

or new election by the Participant as provided in this Section.


3. If a Pensioner dies leaving no close next of kin, the pension payment for the month in

which he died, if not previously paid to him, shall be paid to his named beneficiary. If no

beneficiary has been named, the Trustees in their sole discretion may direct that such

benefits be paid to any person who is the object of the natural bounty of the Pensioner or

to the estate of the Pensioner. (Amendment No. 54 - Adopted 11/30/77)

192




4. If a Pensioner dies before 60 monthly pension payments have been paid and a Participant

and Spouse or other optional Pension is not effective, payment of the monthly pension

amount shall continue to be made up to a maximum of 60 payments, including those

payments made before the death of the Pensioner. These payments shall be paid to the

Pensioner's named beneficiary only if the named beneficiary is included in one of the

following classes:


(i) Spouse. (Amendment No. 54 - Adopted 11/30/77)

(ii) Children and adopted children under the age of 21 years; children and adopted

children of any age if they are totally disabled; and stepchildren who resided with

the Pensioner, were dependent on him, and are under the age of 21 years.


193




4. (Continued)

(iii) Others who fall within the term of "dependent" as defined under Article I,

Definitions, of the Regulations of the M.M.& P. Health & Benefit Plan.

(Amendment No. 54 - Adopted 11/30/77) (Amendment No. 56 - Adopted 8/22/79)

5. If the named beneficiary in a class described in 4 above dies before the aggregate 60

monthly pension payments have been paid, or if the Pensioner died without naming a

beneficiary, or if the Pensioner named a beneficiary not included in 4 above, payment of

the monthly pension amount shall be made up to a maximum of 60 payments (including

all prior monthly payments) to the following persons, in the order named and in equal

shares where necessary: (Amendment No. 54 - Adopted 11/30/77)

(i) Spouse. (Amendment No. 54 - Adopted 11/30/77)

(ii) Children and adopted children under the age of 21 years; children and adopted

children of any age if they are totally disabled; and stepchildren who resided with

the Pensioner, were dependent on him, and are under the age of 21 years.


194


M.M.& P. PENSION PLAN REGULATIONS C. Upon Retirement. (Continued) (iii) Others who fall within the term of "dependent" as defined under Article I,

Definitions, of the Regulations of the M.M.& P. Health & Benefit Plan.


6. As used herein, "spouse" shall mean a person who is the wife or husband of an Employee

or Pensioner pursuant to a legally accepted marriage. The status of "spouse" shall cease

at the date of a legal separation or of any interlocutory or final decree in a proceeding of

divorce or annulment or to terminate the marriage.


D. Survivors of Participants - Before Retirement

1. After Age 55. Effective for deaths on and after June 16, 1981, if a Participant who has

attained age 55 dies before retirement at a time when he was eligible for a Regular, Early

Retirement, Reduced or Disability Pension under this Plan, a pension shall be payable to

his eligible surviving spouse, if any, as if the Participant had retired on a 100%

Participant and Spouse Pension on the day before he died, unless he had filed in writing a

rejection of this form of Survivor Benefit.

(Amendment No. 54 - Adopted 11/30/77) (Amendment No. 62 - Adopted 12/4/81) (Amendment No. 63 - Adopted 10/6/82)

195



D. Survivors of Participants – Before Retirement (Continued)

2. Before Age 55.

(i) Effective for deaths on and after June 16, 1981, a Participant under age 55 has the

right to choose to protect his (or her) spouse by coverage by a 100% Participant

and Spouse Pension to be effective in the event of the Participant's death at a time

when he was eligible for a Regular or Disability Pension under this Plan but

before the attainment of age 55.

(Amendment No. 54 - Adopted 11/30/77) (Amendment No. 62 - Adopted 12/4/81) (ii) The Trustees shall have the sole discretion to determine from the records

submitted whether or not the said Participant would have been fully entitled

to a Disability Pension.


(iii) For purposes of this survivor's benefit only, a Participant who dies prior to the age

of 55, and meets all the other requirements for a Disability Pension under this

Plan, shall not be deemed to have been eligible to retire on a Disability Pension

unless he had been Permanently and Totally disabled for at least the 150 days

prior to his date of death.


196



D. Survivors of Participants - Before Retirement (Continued) 2. Before Age 55. (Continued) (iv) A Participant may make this choice (or revocation of a previous choice) by

written election filed with the Trustees at any time, but his choice is not to be

effective until 24 months after it is filed with the Trustees, except if he dies as the

result of an accident occurring after his election and application of the 24-month

period of ineffectiveness would deny the pension to his spouse. However, any

such choice made in writing filed with the Trustees by March 31, 1978 shall be

deemed timely and the 24-month period of ineffectiveness inapplicable.

(Amendment No. 54 -Adopted 11/30/77)

(v) If, in accordance with this Section, the spouse was protected for any part of a

calendar year prior to the Participant's 55th birth date, in the sense that a pension

would have been payable to the spouse if the Participant had died in that year,

there shall be a charge against the future pension otherwise payable to the

Participant or the spouse. The charge shall be a reduction, for each of such

calendar years of eligibility, of 1 cent for each $10 of monthly benefits to which

the Participant would otherwise be entitled.

197



D. Survivors of Participants - Before Retirement (Continued)

2. Before Age 55. (Continued)

(v) (Continued)

This reduction shall be made before any adjustment of any Participant and Spouse

Pension.

(Amendment No. 54 -Adopted 11/30/77)

(vi) The benefit amount for the surviving spouse shall be determined as if the

Participant had retired on the day before he died.


3. 60-Month Benefit

In the case of a Participant who dies on or after January 1, 1964 but prior to the filing or

the approval of his pension application or the effective date of his pension, monthly

pension payments up to a maximum of 60 monthly payments shall be paid to the person

or persons eligible for a Regular, Reduced or Early Retirement Pension even though his

death occurred prior to the filing or approval of said pension; PROVIDED, HOWEVER,

that no payment under this paragraph shall be made:

(Amendment No. 54 – Adopted 11/30/77)

198



D. Survivors of Participants - Before Retirement (Continued) 3. 60-Month Benefit (Continued)

(i) unless the total of the 60 monthly payments shall be in excess of total payment

due under the Death and Accidental Death provision of the M.M.& P. Health &

Benefit Plan, or (Amendment No. 54 - 11/30/77; Amendment No. 56 - 8/22/79)

(ii) if a Participant and Spouse or Joint and Survivor Pension is payable to the

surviving spouse. (Amendment No. 54 - 11/30/77)

The Trustees shall have the sole discretion to determine from records submitted

whether or not the Participant would have been fully entitled to a Disability

Pension. Similarly, in the case of a Participant who dies prior to the filing or

approval of his pension, the Trustees shall have the sole discretion to determine

whether or not the Participant was fully eligible for a pension.

(Amendment No. 54 -11/30/77)

199



D. Survivors of Participants - Before Retirement (Continued)

4. Lump-Sum Option

In the event the monthly payments described in 3 above are payable to a spouse, she may

accept a lump-sum, in place thereof, on the following conditions, but only if the

Employee has not restricted this option by a limitation included on the beneficiary

designation card.

(Amendment No. 54 - 11/30/77)

(i) The lump sum shall be the commuted value of the sum then payable at the

effective date of the option, and the interest rate used shall be the interest rate in

effect for the Pension Trust at the death of the Employee.

(Amendment No. 54 - 11/30/77)

(ii) The option to accept a lump-sum payment may be exercised only between six

months after and ten months after the death of the Employee.

(Amendment No. 54 - 11/30/77)

E. Adjustment of Pension Amount

When a Participant and Spouse Pension becomes effective, the amount of the Participant's

monthly pension shall be reduced in accordance with generally accepted actuarial principles and

based on an investment return assumption equal to the PBGC

200


M.M.& P. PENSION PLAN REGULATIONS E. Adjustment of Pension Amount (Continued) close-out rate for immediate annuities under terminated single employer plans (29 - C.F.R. Part

2619) in effect on January 1, preceding the retirement effective date, and Group Annuity Table

of 1951 mortality rates.

(Amendment No. 67 - Adopted 10/12/83 - Eff. 1/1/84)

F. Additional Conditions

1. A Participant and Spouse Pension shall be effective only if the Participant and his

surviving spouse were married to each other throughout the year before the Participant's

death and, if retired, the effective date of his pension.


2. The Trustees shall be entitled to rely on a written representation last filed by the

Participant before the effective date of his pension as to whether he or she is married. If

such representation later proves to be false, the Trustees may adjust for any excess

benefits paid as the result of the misrepresentation.


201



F. Additional Conditions (Continued)

3. Election or rejection may not be made or altered after the pension has commenced

(including commencement but for administrative delay).


G. Continuation of Participant and Spouse Pension Form

The monthly amount of the Participant and Spouse Pension, once it has become payable to the

Pensioner, shall not be increased if the spouse is subsequently divorced from the Pensioner or if

the spouse predeceases the Pensioner except in accordance with a Joint and Survivor "pop-up"

option in effect in accordance with prior Regulations of the Plan.


202

Appendix B Page 1 of 2

FOR PENSIONS EFFECTIVE ON AND AFTER SEPTEMBER 1, 1989

FOR PARTICIPANTS WHO EARNED PENSION CREDIT UNDER THE GREAT LAKES AND RIVERS DISTRICT AND MARITIME PENSION PLAN

PRIOR TO SEPTEMBER 1, 1989 Ten Year Certain Option

In lieu of the Pension otherwise payable, a Participant who accrued Pension Credit under the

Great Lakes and Rivers District and Maritime Pension Plan may elect to receive a Ten Year Certain

Option whereby the amount of his monthly pension will be reduced but will continue, after his death, to

his designated beneficiary if he dies before receiving 120 monthly pension payments. Payments to his

beneficiary will continue until an aggregate of 120 payments have been made to the Pensioner and his

beneficiary.

When a Ten Year Certain Option becomes effective, the pension amount otherwise payable shall

be adjusted by multiplying it by the following percentage: ninety percent (90%) minus one and one-half

percent (1-1/2%) for each year, or part thereof (not to exceed ten percent (10%), by which the

Participant retires after age 65.

The election of the Ten Year Certain Option is subject to the following conditions:

(1) The election must be made by the Participant on forms furnished by the Trustees,

completed in all respects and delivered to the Trustees on or before the effective date of

the Participant's pension.

(2) The Ten Year Certain Option shall take effect only if the Participant and his beneficiary

are alive on the date when the Participant's pension is otherwise to take effect.

203

Appendix B Page 2 of 2

Excess of age of employee over age of beneficiary Applicable percentage 10 years or less 100% 11 " 96" 12 93 13 90 14 87 15 84 16 82 17 79 18 77 19 75 20 73 21 72 22 70 23 68 24 67 25 66 26 64 27 63 28 62 29 61 30 60 31 59 32 59 33 58 34 57 35 56 36 56 37 55 38 55 39 54 40 54 41 53 42 53 43 53 44 and greater 52

M.M.& P. PENSION PLAN THIRD RESTATED REGULATIONS APPENDIX PR

SPECIAL PROVISIONS RELATED TO PUERTO RICO PARTICIPANTS

206

PR-1. Purpose and Effect. The purpose of this Appendix PR is to comply with the

requirements for qualification and tax-exemption under Sections 1081.01(a) and 1081.01(d) of

the Puerto Rico Internal Revenue Code of 2011, as amended (the “2011 PR Code” or the “PR

Code”), and any subsequent legislation that modifies or supersedes the foregoing. With respect

to any Participant who (i) is a bona-fide resident of the Commonwealth of Puerto Rico, or (ii)

performs labor or services primarily within the Commonwealth of Puerto Rico, regardless of

residence for other purposes (“Puerto Rico Participant(s)” or “Puerto Rico Employees(s)”), the

following provisions shall also apply and, to the extent that these provisions conflict with other

provisions of the Masters, Mates & Pilots Pension Plan (the “Plan”), the rules in this Appendix

PR shall control solely for purposes of complying with the PR Code for such Puerto Rico

Participants. The only provisions included in this Appendix PR are those that differ from

provisions otherwise contained in the Plan. To the extent not otherwise provided in this

Appendix PR, the general provisions of the Plan shall govern. Any capitalized terms utilized, but

not defined, in this Appendix PR shall have the same meaning as set forth under the Plan.

PR-2. Puerto Rico Highly-Compensated Employee. For purposes of this Appendix

PR, the term “Puerto Rico Highly Compensated Employee” means any Puerto Rico Employee

who: (a) is an officer of an Employer; or (b) received compensation during the prior Plan Year

from the Employer in excess of $115,000 or such other amount in effect under Section

414(q)(1)(B) of the Code and 2011 PR Code Section 1081.01(d)(3)(E)(iii), as such may be

amended or substituted from time to time; or (c) meets such other additional or substitute



207

PR-2. Puerto Rico Highly-Compensated Employee. (Continued)

definition required or permitted under the PR Code to be deemed an Highly Compensated

Employee.

PR-3. Limitation of Annual Contributions. The total contributions by an Employer to

the Plan is any Plan Year with respect to a Puerto Rico Participant shall not exceed the

limitations contained in Section 1033.09 of the 2011 PR Code, as applicable, or as otherwise

provided or permitted under the PR Code.

PR-4. Limitation of Annual Benefits. In addition to any other limits set forth in the

Plan, and notwithstanding any other provisions of the Plan to the contrary, the amount of annual

benefits with respect to a Puerto Rico Participant, when expressed as a straight life annuity with

no ancillary benefits under the Plan shall not exceed the lesser of: (i) 100% of the Puerto Rico

Participant’s Pay for the period of consecutive natural years (not more than three) during which

the Pay paid by the Employer was highest; or (ii) the limit established under Section 415(b) of

the Code, as specified under 2011 PR Code Section 1081.01(a)(11)(A), as adjusted from time to

time. In order to comply with this limitation, all applicable benefits under other qualified defined

benefit plans maintained by an Employer shall be aggregated and shall be considered as a single

plan. To the extent permitted under regulations to be issued under the PR Code, this limitation

shall be administered similarly to the limitation under Section 415 of the Code, as described in

the Plan.



208

PR-5. Pay. For purposes of determining the Pay of a Puerto Rico Participant’s, Pay

shall include, to the extent not otherwise included, Pay reduction amounts under any cash or

deferred arrangement under 2011 PR Code Section 1081.01(d).

For purposes of determining contributions or benefits under the Plan, nondiscrimination

testing and limits on benefits and contributions, if any, and as applicable, Pay for any Puerto

Rico Participants for any Plan Year shall not exceed the applicable limitation under Section

401(a)(17) of the Code, as described in the Plan and specified in Section 1081.01(a)(12) of the

2011 PR Code.

PR-6. Affiliate with respect to Puerto Rico Participants: Means any corporation,

partnership or other person: (a) that is a member of a “controlled group of corporations” as

described in Section 1010.04 of the 2011 PR Code; (b) that is a member of a “group of related

entities” as described in Section 1010.05 of the 2011 PR Code; (iii) that is a member of an

“affiliated service group” as described under Section 1081.01(a)(14)(B) of the 2011 PR Code; or

(iv) that is under “common control” as defined by the Puerto Rico Secretary of Treasury; and

that has Employees that are bona fide residents of Puerto Rico, as this may be further defined by

regulations promulgated under the 2011 PR Code. For purposes of the Plan with respect to

Puerto Rico Participants, all references to an Employer shall include any Affiliates as described

herein.

PR-7. Rollovers. A Puerto Rico Participant may transfer from the Plan his interest in

the Plan in whole or in part to another tax qualified plan or individual retirement account, subject

to the following rules, and subject to the direct rollover distribution rules under the Plan. If all or



209

PR-7. Rollovers. (Continued)

a portion of a Puerto Rico Participant’s benefit is to be distributed in the form of a direct rollover

distribution, such direct rollover distribution may only be made for an amount equal to the Puerto

Rico Participant’s account balance to a Puerto Rico Eligible Retirement Plan that is also

qualified under Code Section 401(a), and, effective for Plan Years beginning on or after January

1, 2011, in compliance with 2011 PR Code Section 1081.01(b)(2)(A). For purposes of this

paragraph, the term “Puerto Rico Eligible Retirement Plan” shall mean a qualified plan and trust

as described in 2011 PR Code Section 1081.01(a).

PR-8. Return of Contributions. To the extent permitted by ERISA and the Code, if the

Puerto Rico Department of Treasury, on timely application made after the establishment of the

Plan, determines that the Plan is not qualified under Sections 1081.01(a) and 1081.01(d) of the

2011 PR Code, or refuses, in writing, to issue a determination as to whether the Plan is so

qualified, the Employer’s contributions made on or after the date on which that determination or

refusal is applicable shall be returned to the Employer. The return shall be made within one year

after the denial of qualification. The provisions of this paragraph shall apply only if the

application for the determination is made by the time prescribed by law for filing the Employer’s

return for the taxable year in which the Plan was adopted, or such later date as the Secretary of

the Treasury may prescribe.

To the extent permitted by ERISA and the Code, each contribution made by an Employer

to the Plan to satisfy the funding requirements for benefits of Puerto Rico Participants is intended

to be deductible under the PR Code for the taxable year for which contributed. If the Puerto Rico



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PR-8. Return of Contributions. (Continued)

Department of Treasury disallows the deduction or if the contribution was made by a mistake in

fact, to the extent permissible under ERISA and the Code, such contribution may be returned to

the Employer within one year after the disallowance of the deduction or after the mistaken

contribution, respectively.

PR-9. Payment of Contributions. Contributions made by an Employer to the Plan with

respect to a Puerto Rico Participants shall be paid to the Trustee not later than the due date for

filing the Employer’s Puerto Rico income tax return for the taxable year in which such payroll

period falls, including any extension thereof.

PR-10. Merger or Consolidation of the Plan. Solely with respect to the Puerto Rico

Participants, any merger or consolidation of the Plan with, or transfer in whole or in part of the

assets and liabilities of the Plan to another trust, will be limited to the extent such other plan and

trust are qualified under 2011 PR Code Section 1081.01(a) and 1081.01(b).

PR-11. Special Taxation of Single Sum Distributions. In the case of a single sum

distribution, if (i) the Plan’s trust is organized under the laws of the Commonwealth of Puerto

Rico, or has a trustee that is a resident of Puerto Rico and uses said trustee as paying agent; and

(ii) the Plan complies with a certain Puerto Rico investment rule under 2011 PR Code Section

1081.01(b)(1)(B), then the amount of such lump-sum distribution in excess of amounts

contributed by the Participant that has already been subject to taxation shall be considered as a

long-term capital gain subject to withholding as provided in said Section 1081.01(b)(1)(B).



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PR-12. Applicable Law. Except as otherwise required by ERISA or the Code, the

provisions of this Appendix PR shall be construed, enforced and administered according to the

laws of the Commonwealth of Puerto Rico.

PR-13. Right to Amend. In addition to the provisions under Article VII, Section 7.01,

the Trustees reserve the right to amend the Plan, including this Appendix PR, to ensure the

continued qualification of the Plan under the 2011 PR Code.

masters, mates & pilots pension plan third …m.m.& p. pension plan third restated...

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